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American Airlines plans to raise US$1.5b in stock, convertible notes sale

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American Airlines Group said on Sunday it plans to raise US$1.50 billion by selling shares and convertible senior notes, to improve the airline's liquidity as it grapples with travel restrictions caused by the coronavirus.

[BENGALURU] American Airlines Group said on Sunday it plans to raise US$1.50 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 US$112.5 million of additional common shares and up to US$112.5 million of additional notes respectively, the company said.

Goldman Sachs & Co, 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.

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The airline said it also intends to enter into a new US$500 million term loan facility due 2024.

American Airlines and Delta Air Lines 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.

REUTERS

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