American Airlines intends to issue $983.000.000 of enhanced equipment trust certificates (EETC) (2017-1 EETC) in two classes: Class AA Certificates, Class A Certificatesa and Class B notes. The notes will fund the deliveries of 24 new aircraft that are expected to be delivered between January and May 2017.
Tranches:
- Class AA senior tranche amortizing over 12.1 years with a 38.6% initial/max loan-to-value ratio, the weighted average life is 8.8 years. The interest rate is 3.65% ;
- Class A subordinated tranche amortizing over 12.1 years with a 54.4% initial/max loan-to-value ratio, the weighted average life is 8.8 years. The interest rate is 4.00%;
- Class B tranche was added later as used option. It has 8.1 years tenor with average life of 5.5 years. The LVR is 70.7%. The interest rate is 4.95%
Ratings agency Fitch has rated the AA tranche at “AA” and the A tranche at “A”, while Moody’s has rated the two tranches at Aa3 and A2. For the B tranche, the ratings are BBB and Baa2 respectively
Aircraft:
- 10xA321 - expected MSNs: 7349, 7509, 7539, 7541, 7419, 7564, 7617, 7636, 7500, 7566;
- 3x737-800 - expected MSNs: 31262, 33344, 31265;
- 3x787-8 - expected MSNs: 40635, 40636, 40637;
- 1x787-9 - expected MSN: 40644;
- 7xERJ175 - expected MSNs: 17000630, 17000634, 17000635, 17000641, 17000642, 17000649, 17000650;
American expects that each Airbus A321-231S aircraft, each Boeing 737-800 aircraft, each Boeing 787-8 and the Boeing 787-9 aircraft that is scheduled to be delivered to American will be owned and operated by American, and that each Embraer ERJ 175 LR aircraft that is scheduled to be delivered to American will be leased by American to Envoy Air, Inc.
Banks:
- Depositary: Citibank, N.A.
- Liquidity Facility Provider: Citibank, N.A., replaced by National Australia Bank on 31 March 2017
- Joint Structuring Agents and Lead Bookrunners: Credit Suisse, Citigroup and Deutsche Bank.
Update: Fitch also affirmed the class AA, class A and class B certificates of American's 2017-2 and 2017-1 at A+, A- and BB, respectively.
