WASHINGTON (US) – American Airlines Group Inc said on Sunday it plans to garner $3.5 billion (2.83 billion pounds) in new financing, to improve its liquidity as it struggles with travel curbs caused by the coronavirus.
The company plans to raise $1.5 billion by selling shares and convertible senior notes due 2025, it said in a statement.
The airline said it would offer $1.5 billion in senior secured notes and that it intends to enter into a new $500 million term loan facility due 2024.
The company expects to use the net proceeds from the stock and convertible notes offerings for general corporate purposes and to enhance its liquidity position, the airline added.
The stock and convertible notes offerings, first reported by Bloomberg News, include a 30-day option for the underwriters to purchase up to $112.5 million of additional common shares and up to $112.5 million of additional convertible notes respectively, the company said.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field