American Airlines Adds USD$830 Mln To Liquidity
American Airlines' parent AMR said on Tuesday it had completed an offering of common stock and convertible notes, adding USD$830 million to its cash position.
The latest sale, combined with other recent stock and note offerings, have netted AMR USD$4.2 billion in liquidity and aircraft financing in September. The company said it expects to end the third quarter with USD$4.4 billion in cash.
AMR chief executive Gerard Arpey said the new liquidity and long-term financing had buttressed the company's financial foundation and added flexibility to its future plans.
The company had offered 48.5 million shares of its common stock and USD$460 million of its 6.25 percent convertible senior notes due 2014.
AMR also said American has repaid its USD$432 million secured bank term loan facility, which will be refinanced using the proceeds of American's private sale of USD$450 million principal amount of senior secured notes. This transaction is expected to be completed on October 9, AMR said.