American Airlines Group Inc. (NASDAQ: AAL) (the “Company”) today announced that it priced $750.0 million aggregate principal amount of unsecured senior notes due 2022. The offering was increased from a previously announced size of $350.0 million aggregate principal amount of notes. The notes will have an interest rate of 5.000% per annum and are being issued at a price equal to 100% of their face value. The notes will be guaranteed on a senior unsecured basis by the Company’s direct wholly-owned subsidiary, American Airlines, Inc.
The Company intends to use the net proceeds from the offering to fund contributions to its pension plans.
The notes are being offered and sold only to persons reasonably believed to be qualified institutional buyers, as defined in, and in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) and to non-U.S. persons in offshore transactions outside the United States in reliance on Regulation S under the Securities Act. The notes will not be registered under the Securities Act or any other securities laws of any jurisdiction and will not have the benefit of any exchange offer or other registration rights. The notes may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.