Bloomberg Anywhere Remote Login Bloomberg Terminal Request a Demo

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

American Sells $256 Million of Plane-Backed Bonds After Merger

Dec. 13 (Bloomberg) -- A unit of American Airlines Group Inc., formed this week when AMR Corp. and US Airways Group Inc. combined, sold $256 million of debt backed by airplanes in its first sale since the merger.

The world’s largest carrier issued 6 percent, Class C certificates due January 2017, according to data compiled by Bloomberg. The notes will rank junior to the $1.4 billion of 4.95 percent, Class A securities sold in July and the $512 million of 5.6 percent, Class B certificates issued last month, which are secured by the same pool of planes, according to a report today from Fitch Ratings.

The new debt is expected to be rated B+ by Standard & Poor’s and Fitch, according to the ratings companies.

The notes will be secured by 75 of American’s Boeing aircraft, 41 of which are 737-823 models, the Fort Worth, Texas-based company said in a statement. Another 14 of the aircraft are 757-223 planes, 19 are 777-223ER models and one is a 767-323ER plane. Proceeds will be used for general corporate purposes.

To contact the reporter on this story: Sarika Gangar in New York at sgangar@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.