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June 26, 2013

American announces cash tender offer for $1.2 billion in outstanding debt

American Airlines said on Wednesday that it has commenced a tender offer to purchase about $1.2 billion in outstanding debt with cash.

The Fort Worth-based carrier said it wants to repay two different pass through certificates issued in 2009 and 2011 and secured notes issued in 2009 with the cash tender offer.

The offer was approved by the bankruptcy court on June 13.  The tender offer expires on August 2.

"Assuming American completes the offers for such Securities on terms and conditions acceptable to American, American currently expects to repay all Securities outstanding after the settlement of the applicable tender offer at a repayment price equal to 100% of the outstanding pool balance or principal amount (as applicable) of these Securities, together with accrued and unpaid interest thereon, which price is less than the applicable total consideration that holders who tender their Securities prior to the applicable early tender date will be entitled to receive if their Securities are accepted for purchase pursuant to the offers," the company said in a statement.

American has retained Deutsche Bank and Morgan Stanley as managers of the tender offer. The offer is extended to holders of 8.625% Class A pass through certificates, series 2011-2 and 10.375% Class A pass through certificates, series 2009-1. Holders of the 13.0% 2009-2 secured notes due in 2016 are also included in the offer.

-Andrea Ahles



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