American Airlines to sell shares, debt to cope with coronavirus hit
Move is meant to improve the airline's liquidity as it grapples with travel restrictions caused by the coronavirus
(Reuters) - American Airlines Group Inc said on Sunday it plans to raise $1.5 billion by selling shares and convertible senior notes, to improve the airline’s liquidity as it grapples with travel restrictions caused by the coronavirus.
The company expects to use a portion of the net proceeds from the offerings for general corporate purposes and to enhance its liquidity position, the airline said in a statement.
The stock and notes offerings 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 notes respectively, the company said.
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Goldman Sachs & Co. LLC, Citigroup, BofA Securities and JP Morgan will be acting as representatives for the underwriters.
WEALTHY AMERICANS FLOCK TO THIS CARIBBEAN NATION FOR LUXURY PROPERTIES
The offerings, first reported by Bloomberg News, is said to be due by 2025.
The airline said it also intends to enter into a new $500 million term loan facility due 2024.
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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 U.S. government reported record low passenger numbers in April amid the coronavirus pandemic.
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