American Airlines is upsizing the carrier’s first enhanced equipment trust certificate issuance of 2017 to $983.2 million, covering the financing of additional new aircraft joining American’s fleet over the next five months.
The Series 2017-1 offering, which AA had
The prospectus filed with the Securities and Exchange Commission on Thursday states the certificates will be secured by 24 narrow-body and wide-body aircraft to be delivered by Airbus, Boeing and Embraer through May 2017.
The Class AA notes are expected to generate an ‘Aa3’ structured finance rating from Moody’s Investors Service and ‘AA’ from Fitch Ratings. The Class A notes will have preliminary ratings of ‘A2’ and ‘A’, while the subordinate Class B notes will carry ‘Baa3’ and ‘BBB’ ratings, respectively.
The new filing expands American’s initial plans to issue $592.5 million in equipment certificates for the delivery of 18 planes. The upsizing does not alter American’s view that the deal is “largely consistent” with the previous $557.65 million 2016-3 EETC series, which includes an 18-month liquidity facility and a preferred junior interest on the Class A notes that will be paid ahead of principal payments on the super-senior ‘AA’ notes.
The extended lineup of vintage 2017 planes will now include 10 Airbus A321-231S aircraft, three Boeing 737-800s, three Boeing 787-8 passenger planes, a Boeing 787-9 and seven regional Embraer ERF 175 LR jets.
The 24 jets have a collected appraised value of $1.41 billion.
