American Airlines Adds USD$830 Mln To Liquidity

September 29, 2009

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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.