American Airlines Locks In $1.05B Aircraft-Backed Bond at 5.70%

summarizeSummary

American Airlines priced a $1.05 billion EETC offering at 5.70%, backed by a portfolio of 37 owned and new-delivery aircraft, to fund fleet investments and refinance debt.

check_boxKey Events · Financing and Capital Events · AAL

• $1.05B EETC Offering Priced

  American Airlines priced $1,051,470,000 in Class A Pass Through Certificates, Series 2026-2A, with a 5.70% interest rate and a final expected distribution date of February 20, 2039.

• 37-Aircraft Collateral Pool

  The certificates are secured by 37 aircraft: 9 new A321neos, 5 new A321 XLRs, 13 owned A321-200s, 2 owned 777-300ERs, and 8 new E175s, with an initial aggregate appraised value of $1.77 billion.

• Initial LTV of 59.7%

  The initial loan-to-value ratio for the Class A certificates is 59.7%, providing a substantial equity cushion for investors.

• Proceeds for Fleet Investment and Refinancing

  Proceeds will finance the acquisition of new delivery aircraft and refinance existing owned aircraft, with any remainder used for general corporate purposes.

auto_awesomeAnalysis · AAL · Energy & Transportation

To fund new deliveries and refinance existing assets, American Airlines is raising $1.05 billion through an Enhanced Equipment Trust Certificate (EETC) secured by 37 aircraft, including new A321neos and XLRs. The 5.70% coupon and 59.7% initial loan-to-value ratio reflect a standard, investment-grade aircraft financing, extending the company's debt maturity profile. The offering comes just days after a nationwide ground stop due to an IT outage and a week after the company slashed its full-year guidance, highlighting the critical need for stable, long-term financing amid operational and earnings headwinds.