American Airlines Group on Sunday said, it plans to raise US$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 offering of the Notes and borrowings under the Term Loan to refinance its delayed draw term loan facility which the Company and the Guarantor entered into on March 18, 2020 and is scheduled to mature on March 17, 2021, with the remainder for general corporate purposes and to enhance the company’s liquidity position. The final terms and amounts of the Notes and the Term Loan are subject to market and other conditions, and may be materially different than expectations. Neither the closing of the Notes offering nor the Term Loan is conditioned upon the closing of the other financing.
The stock and notes offerings include a 30-day option for the underwriters to purchase up to US$112.5 million of additional common shares and up to $112.5 million of additional notes respectively, the company said.
Goldman Sachs & Co. LLC, Citigroup, BofA Securities and JP Morgan will be acting as representatives for the underwriters.
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 by 2024.
Culled from avittrader.com