American Airlines to Raise $3.5 Billion Amidst Coronavirus Pandemic

By Paul Riegler on 21 June 2020
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American Airlines announced plans to raise $3.5 billion in new financing to shore up liquidity amidst the disruption to the travel sector caused by the coronavirus pandemic.

The Fort Worth-based carrier said it will raise $1.5 billion through the sale of shares and convertible senior notes due 2025, and that it will offer $1.5 billion in senior secured notes. It will also enter into a new $500 million term loan facility due in 2024, it said.

Four firms – BofA Securities, Citigroup, Goldman Sachs & Co., and JP Morgan –  will act as representatives for the underwriters.

The world’s largest airline said in a statement that it plans to use the proceeds from the stock and convertible notes offerings “for general corporate purposes and to enhance the Company’s liquidity position.”

American posted its first quarterly loss in the first quarter of the year amidst a sharp decline in bookings due to Covid-19, and the company has been burning through approximately $70 million a day in the second quarter.

(Photo: Accura Media Group)

Accura News

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