American upsizes EETC to $797 million

American upsizes EETC to $797 million

American Airlines has upsized its 2017-2 equipment trust certificates (EETC) to a combined total of $797 million. The credit rating remains unaffected.

The EETC is comprised of two tranches that have been upsized to $544,644,000 and $252,254,000. The tranches have been rated ‘AA ‘and ‘A’ by credit rating firm Fitch Ratings and are due in October 2029.

The tranches were originally sized at $436.7 million and $202.3 million. Their due date was unaffected by the upsizing.

Seven aircraft have been added to the transactions collateral – three ERJ-175s and four 737 MAX 8s. The collateral pool originally comprised 23 aircraft all considered tier-1 collateral by Fitch, bringing the total number to 30.

Loan-to-value (LTV) for the tranches has also been updated, with the maximum stress case for the LTV being 79% and 83.2% – according to Fitch’s rating.

American Airlines’ overall credit rating has been rated BB- with a stable credit outlook.


Issuer: American Airlines
Certificate: American Airlines 2017-2
Type: Pass-through trust certificate
Tranches: Two
Collateral: 30 aircraft

Tranche rating: AA
Size: $544,644,000
Due date: October 2029

Tranche rating: A
Size: $252,254,000
Due date: October 2029

Alex Baldwin
By Alex Baldwin August 2, 2017 15:34