The agreement amends a loan agreement dated May 23, 2013, and extends the facility to December 14, 2023. Immediately prior to the closing date, $970 million principal amount of loans were outstanding under the 2013 loan agreement. On the closing date, American borrowed $1.25 billion under the term loan facility. The proceeds of the term loan facility will be used for general corporate purposes.
Borrowings under the facility bear interest at an index rate plus an applicable index margin or LIBOR (subject to a floor of 0.75%) plus an applicable LIBOR margin for interest periods of one, three or six months. The LIBOR margin is 2.50%.
The obligations of American under the amended agreement are secured by a lien on certain airport take-off and landing slots at LaGuardia Airport and Ronald Reagan Washington National Airport and certain flight simulators owned by AAG.