American Airlines (AAL) amends certain credit agreements

On May 28, 2025, American Airlines (NASDAQ: AAL), and AAdvantage Loyalty IP Ltd. (“Loyalty Co” and with American, collectively, the “Borrowers”), an exempted company incorporated with limited liability under the laws of the Cayman Islands, entered into that certain Third Amendment to Term Loan Credit and Guaranty Agreement (the “Third Amendment”) with Barclays Bank PLC, as administrative agent (the “Administrative Agent”), and Citibank, N.A., as the designated lender of the 2025 Incremental Term Loans (as defined below) to the Term Loan Credit and Guaranty Agreement, dated as of March 24, 2021 (prior to the entry into the Third Amendment, the “Prior 2021 Credit Agreement”), with, among others, the lenders party thereto, the Administrative Agent, and Wilmington Trust, National Association, as collateral administrator.Pursuant to the Third Amendment, the Borrowers incurred $1.0 billion of incremental term loans (the “2025 Incremental Term Loans”). The terms of the 2025 Incremental Term Loans are substantially similar to the existing term loans under the Prior 2021 Credit Agreement; however, the 2025 Incremental Term Loans (a) bear interest at a base rate (subject to a floor of 0.00%) plus an applicable margin of 2.25% per annum, or, at the Borrowers’ option, the SOFR rate for a tenor of three months (subject to a floor of 0.00%), plus an applicable margin of 3.25% per annum, (b) have a scheduled principal amortization amount equal to 0.25% of the original aggregate principal amount of the 2025 Incremental Term Loans made on the effective date of the Third Amendment, payable quarterly beginning in July 2025, (c) are not subject to a cost spread adjustment and (d) have a maturity date of May 28, 2032. The Borrowers will use the net proceeds of the 2025 Incremental Term Loans (after deducting fees, costs and expenses of the transaction) (i) to fund the reserve account required by the Third Amendment, (ii) to make an additional intercompany loan to American, and (iii) for general corporate purposes, including the repayment of near term maturities.

You May Also Be Interested In

• Citigroup set to join top banks in Anthropic IPO - Bloomberg
• Hertz Global amends voting agreement with CK Amarillo after lawsuit
• Canaccord Downgrades Northern Star Resources (NST:AU) (NESRF) to Hold