American Airlines, Inc. operates as a passenger and cargo air carrier. It also offers freight and mail services. The company operates hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York City, Philadelphia, Phoenix, and Washington. As of December 31, 2015, it operated a fleet of 946 aircraft. The company was founded in 1934 and is based in Fort Worth, Texas. American Airlines, Inc. is a subsidiary of American Airlines Group Inc.
4333 Amon Carter Boulevard
Fort Worth, TX 76155
Founded in 1934
American Airlines, Inc. and American Airlines Group Inc. Enter into Second Amendment to the Amended and Restated Credit and Guaranty Agreement
Sep 22 16
On September 22, 2016, American Airlines, Inc. and American Airlines Group Inc. entered into a Second Amendment to the Amended and Restated Credit and Guaranty Agreement, amending the Amended and Restated Credit and Guaranty Agreement dated as of April 20, 2015, among American, AAG, the lenders from time to time party thereto, Citibank N.A., as administrative agent, and certain other parties thereto. On the Closing Date, the aggregate principal amount of the term loans outstanding under the 2015 Credit Agreement was $742.5 million. Under the Second Amendment, American refinanced the Existing Term Loans with proceeds of term loans incurred pursuant to the Second Amendment. Pursuant to the Second Amendment, the interest rate margin on the 2016 Term Loans was reduced to 2.50% for those loans with interest rates based on LIBOR and to 1.50% for loans with interest rates based on an index (compared to 1.75% for the Existing Term Loans). The revolving credit facility under the 2015 Credit Agreement remains unchanged and, as of the Closing Date, there were no borrowings or letters of credit outstanding thereunder.
American Airlines, Inc. Enters into Amended and Restated Note Purchase Agreement
Jul 12 16
On July 8, 2016, American Airlines, Inc., Wilmington Trust Company, as trustee under certain pass through trusts formed by the Company and as subordination agent, Wilmington Trust, National Association, as escrow agent under the Escrow Agreement, and Wilmington Trust Company, as paying agent under the Escrow Agreement, entered into an Amended and Restated Note Purchase Agreement, and American, the Trustee and Wilmington Trust Company, as subordination agent, loan trustee and in its individual capacity, entered into amendments to participation agreements with respect to each Funded Aircraft. The Note Purchase Agreement and Participation Agreement Amendments, subject to certain terms and conditions, provide for the issuance by American of Series B equipment notes in the aggregate principal amount of $226,949,000 to be secured by (a) eleven Airbus A321-231S aircraft either delivered new to American from November 2015 to June 2016 or newly manufactured and scheduled for delivery to American from July 2016 to August 2016, (b) seven Boeing 737-823 aircraft either delivered new to American from December 2015 to June 2016 or newly manufactured and scheduled for delivery to American from July 2016 to August 2016, (c) two Boeing 777-323ER aircraft delivered new to American in February 2016 and March 2016 and (d) two Boeing 787-8 aircraft delivered new to American in May 2016. Each Aircraft that has not been delivered on or prior to July 8, 2016 or, if delivered, but with respect to which the Company has not issued Equipment Notes or other series of equipment notes, is referred to as a Pre-Funded Aircraft and, collectively, the Pre-Funded Aircraft and each other Aircraft delivered to the Company on or prior to July 8, 2016 is referred to as a Funded Aircraft and, collectively, the Funded Aircraft . Each Amended Indenture provides for, and each Indenture contemplates, the issuance of equipment notes in three series: Series AA, bearing interest at the rate of 3.20% per annum, in the aggregate principal amount (once all Series AA equipment notes have been issued) equal to $567,360,000, Series A, bearing interest at the rate of 3.65% per annum in the aggregate principal amount (once all Series A equipment notes have been issued) equal to $261,284,000 and Series B, bearing interest at the rate of 4.375% per annum in the aggregate principal amount (once all the Equipment Notes have been issued) equal to $226,949,000. The proceeds from the sale of American Airlines Pass Through Certificates, Series 2016-2B were used by the Trustee to purchase the Equipment Notes with respect to each Funded Aircraft issued on July 8, 2016 and, pending the purchase of the remaining Equipment Notes, the balance of such proceeds were placed in escrow by the Trustee pursuant to the Escrow and Paying Agent Agreement, dated as of July 8, 2016, among the Escrow Agent, the Paying Agent, Citigroup Global Markets Inc., as the initial purchaser, and the Trustee. The escrowed funds were deposited with Citibank, N.A. as depositary under a deposit agreement, dated as of July 8, 2016, between the Escrow Agent and the Depositary. The interest on the Equipment Notes and the escrowed funds will be payable semiannually on June 15 and December 15 of each year, commencing on December 15, 2016. The principal payments on the Equipment Notes are scheduled for payment on June 15 and December 15 of each year, commencing on June 15, 2017. Final payments with respect to the Equipment Notes will be due on June 15, 2024. Maturity of the Equipment Notes may be accelerated upon the occurrence of certain events of default, including failure by American (in some cases after notice or the expiration of a grace period, or both) to make payments under the applicable Indenture when due or to comply with certain covenants, as well as certain bankruptcy events involving American. The Equipment Notes issued with respect to each Aircraft will be secured by a lien on such Aircraft and cross-collateralized by the other Aircraft financed pursuant to the Note Purchase Agreement.