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## NOTES TO CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC. 

## (d) Senior Notes 

The details of our 5.50% and 4.625% senior notes are shown in the table below as of December 31, 2018: 

<img src='content_image/1050204.jpg'>

The 5.50% and 4.625% senior notes are senior unsecured obligations of AAG. The senior notes are fully and unconditionally guaranteed by American. The indentures for the senior notes contain covenants and events of default generally customary for similar financings. In addition, if we experience specific kinds of changes of control, we must offer to repurchase the senior notes at a price of 101% of the principal amount plus accrued and unpaid interest, if any, to (but not including) the repurchase date. Upon the occurrence of certain events of default, the senior notes may be accelerated and become due and payable. 

## Guarantees 

As of December 31, 2018, AAG had issued guarantees covering approximately $769 million of American’s special facility revenue bonds (and interest thereon) and $8.4 billion of American’s secured debt (and interest thereon), including the Credit Facilities and certain EETC financings. 

## Collateral-Related Covenants 

Certain of our debt financing agreements contain loan to value (LTV) ratio covenants and require us to annually appraise the related collateral. Pursuant to such agreements, if the LTV ratio exceeds a specified threshold, we are required, as applicable, to pledge additional qualifying collateral (which in some cases may include cash collateral), or pay down such financing, in whole or in part. 

Specifically, we are required to meet certain collateral coverage tests on an annual basis for our Credit Facilities, as described below: 

<img src='content_image/1050203.jpg'>

At December 31, 2018, we were in compliance with the applicable collateral coverage tests as of the most recent measurement dates. 

