American Airlines announced it has entered into the Twelfth Amendment to its Amended and Restated Credit and Guaranty Agreement. The amendment refinances existing term loans and provides incremental capital through the issuance of new term loans totaling approximately $1.85 billion.
Key Details
- Transaction: The company secured $1.85 billion in new 2026 Term Loans, which includes the refinancing of $1.147 billion in existing term loans and the incurrence of $703.2 million in new incremental term loans.
- Loan Terms: The new term loans mature on May 29, 2033. They will bear interest at either a base rate plus a 2.00% margin or the SOFR rate plus a 3.00% margin, at the company's option.
- Repayment: The loans are scheduled to be repaid in annual installments equal to 1.00% of the total principal amount, beginning on the first anniversary of the amendment.