TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
American Airlines seeks $3.5 billion in new financing
Change Size
In this file photo taken on March 13, 2019 an American Airlines 737 Max sits at the gate at LaGuardia airport in New York. American Airlines announced April 14, 2019, it would scrap some 115 flights per day in the coming months because its fleet of Boeing 737 MAX planes is being grounded until August 19. America's leading airline had previously only planned to keep the planes out of commission until June 5, with Boeing facing intense scrutiny after 157 people died in an Ethiopian Airlines 737 MAX crash on March 10 -- the second deadly crash involving the aircraft in five months.The global fleet of 737 MAX planes has been barred from flying since mid-March.
(AFP/Don Emmert)
A
merican Airlines Group Inc said on Sunday it plans to secure US$3.5 billion in new financing, to improve the airline’s liquidity as it grapples with travel restrictions caused by the coronavirus.
The company plans to raise $1.5 billion by selling shares and convertible senior notes due 2025, the airline said in a statement.
Additionally, the airline said it will offer $1.5 billion in senior secured notes and that it intends to enter into a new $500 million term loan facility due 2024.
The company expects to use the net proceeds from the stock and convertible notes offerings for general corporate purposes and to enhance its liquidity position, the airline added.
The stock and convertible notes offerings, first reported by Bloomberg News, include a 30-day option for the underwriters to purchase up to $112.5 million of additional common shares and up to $112.5 million of additional convertible notes respectively, the company said.
Goldman Sachs & Co. LLC, Citigroup, BofA Securities and JP Morgan will be acting as representatives for the underwriters.
American Airlines and Delta Air Lines Inc said last week that a modest recovery in demand was helping to slow daily cash burn rates in June after the US government reported record low passenger numbers in April amid the coronavirus pandemic.
