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Snímek obrazovky 2021-08-18 v 13.30_edit

American Airlines Group

Investment evaluation

The images below show the real trades of some of our clients or the balances of the property accounts of some of our clients, while IMPERIUM FINANCE s.r.o. does not guarantee that the same or higher appreciation will result from the trading of every investor. Investing is always associated with risks, which the investor should first familiarize himself with, e.g. through the document "Investment services, investment instruments and risks related to them", which is available  here . Please also note that the evaluations below are based on gross performance. In order to obtain a net return, it is necessary to take into account the influence of all costs associated with investing, see, for example, a sample calculation of business costs, which is available here . The net investment return may also be affected by the tax regime, which depends on the individual circumstances of each investor and may change in the future. If the investment instrument listed below is denominated in a foreign currency, the valuation presented also refers to this currency and the return on the investment in the investor's currency may be affected by exchange rate fluctuations.
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American Airlines Group

American Airlines is America's largest airline. Before Covid-19, the company was working on a decent restructuring to increase the competitiveness of its services and reduce costs.  With the advent of rapid diagnostic tests, the prospect of a vaccine and the weakening of the virus, the hope of a gradual end to the pandemic and a return to normal is on the horizon.  

Complete information

Issuer
American Airlines 2013-1 Pass-Through Trust
The name of the issue
American Airlines 2013-1, 4% 15Jan2027
Currency
US dollar $
Emission volume
$506,746,000

The face value of the bond

$544 USD

Indicative market price

$415 USD

Discount

$129 USD
Coupon from face value
4% p.a
Coupon payout frequency

Due date

quarterly payment
7/15/2025

 100% liquidity

Yes
Minimum volume
$100,000

Yield to Maturity 

8.37% pa - before taking into account all costs

Preferred scenario

23.61% pa - before taking into account all costs
Rating
BBB
Hierarchy of debt
Senior Secured & First Lien
You can find the prospectus for the bonds here:
4% Senior Notes due 2025 - Prospectus

Collateral and rating

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We managed to secure the company's bonds fully covered by aircraft, or rather they are against pledged bonds.  The rating of these bonds is from the S&P and Fitch at BBB levels , i.e. investment grade.

Before the pandemic, the bonds even had a rating in the middle of the investment band, at the A+ level, today there are, for example, Visa's bonds, which bear a yield of 1.5% until maturity. The rating agencies responded to the situation by revising the rating and gave the company a BBB rating on September 3, 2020, which is still a top rating.

The debt is senior secured and FIRST LIEN, i.e. the highest category. The company can never issue more senior debt in the future. In the event of bankruptcy (which we do not expect), this debt will always be the first to be satisfied.

bond rating
Hierarchie dluhu

LTV - the value of the bonds is less than 50% of the value of the aircraft, i.e. the bond is 2x reinsured.

american airlines

Fleet - the main asset that covers this bond is the relatively new 777 aircraft, which should fully cover the payment of the bonds in the event of the company's default.

american airlines

Development of the bond

The bonds traded at a yield of 2.3% to maturity. We expect the bond to return to these values within 1-2 years, as it is fully secured by airliners. The price due is 100%.

american airlines

Bond summary

We expect the bond to start rising in price similar to Royal Caribbean Cruises or United Airlines, easyJet bonds. In other words, companies from the human transport and tourism sectors, since the end of air transport and lack of interest in commercial aircraft cannot be assumed in the future. On the contrary, we look forward to a gradual return to "normal." At the same time, it is necessary to realize in which instrument I am investing, if I am assessing the return risk of my investment. In this case, these are bonds covered (LTV 48%) by a fleet of commercial aircraft. 

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