American Airlines has reworked and restated its credit agreement, according to a filing with the Securities and Exchange Commission. The reworked $773 million credit facility consists of a $448 million term loan priced at LIBOR plus 3 1/4% and a $325 million revolver also priced at LIBOR plus 3 1/4%. JPMorgan and Citigroup lead the amendment and also led the original deal. The credit restatement was issued last Monday.
The previous $772 million deal, entered into on Dec.17, 2004, consisted of a $525 million revolver and a $247 million term loan. Pricing on the revolver was LIBOR plus 3 1/4% and the term loan was priced at LIBOR plus 5 1/4%.
"They got this restatement at the right time for them," remarked one investor. "AMR Corp. [the parent company of American Airlines] is looking better, which is beneficial to AA. Their business model looks pretty good right now and they are getting ready to launch a few new routes by the summer. Things are looking decent." A spokesman at American Airlines declined to comment as did a spokesman at JPMorgan.