American Airlines announces pricing of private offering of senior secured notes

Direct News Source

25-Sep-2009 American Airlines, Inc. (the "Company"), the principal operating subsidiary of AMR Corporation (NYSE: AMR), today announced the pricing of its private offering of $450,000,000 aggregate principal amount of its 10 1/2% senior secured notes due 2012 (the "notes").

The notes are expected to be secured by certain of the Company's aircraft, and proceeds from the offering of the notes will be used to refinance the Company's existing $432 million secured bank term loan facility. In connection with such refinancing, the Company will give the requisite notice under such facility to prepay all borrowings thereunder on 28-Sep-2009. The notes will be guaranteed by AMR. Completion of the offering of the notes is subject to customary closing conditions and is expected to occur on 09-Oct-2009.

The notes are being offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act") and outside the United States pursuant to Regulation S under the Securities Act. The notes will not be registered under the Securities Act or applicable state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state law.