American Airlines is issuing a structured finance deal comprising $725.7 million of Class-A passthrough certificates., according to Moody's Investors Service.
The rating agency has assigned a 'Baa3' rating to the Class-A passthrough certificates Series 2011-2 to be issued by American Airlines.
The payment obligations under the notes will be fully and unconditionally guaranteed by AMR Corp., American Airline's parent company.
AMR said that the 10-year passthrough certificates will be used to finance aircraft, the company said in a filing with the Securities and Exchange Commission.
The Class-A equipment notes issued by American Airlines and acquired with the proceeds of the certificates will be the primary assets of the passthrough trust.
The certificates' proceeds will refinance 43 aircraft, twenty seven of which are presently financed by American Airline's 2001-2 Enhanced Equipment Trust Certificates, respectively; twelve aircraft serve as collateral for various third-party financing agreements. The remaining proceeds will finance four aircraft.
Joint structuring agents and bookrunners are Morgan Stanley and Deutsche Bank Securities. Additional bookrunners on the transaction are Goldman Sachs, Credit Suisse, and Citigroup Global Markets.