American Airways Group Inc (NASDAQ: AAL) plans to promote shares and convertible senior notes due 2025 to boost $3.5 billion to ease the liquidity disaster throughout the pandemic.
What Occurred
On Sunday, American Airways proposed a public providing of $750 million of its widespread stock in addition to $750 million worth of convertible senior notes due 2025.
Each the stock and notes choices embrace a 30-day choice for the underwriters to buy, in complete or partially, as much as $112.5 million of extra widespread shares and $112.5 million of extra convertible notes.
Individually, American Airways introduced a non-public providing of $1.5 billion in senior secured notes due 2025. The corporate additionally mentioned it might enter into a brand new $500 million time period loan facility due in 2024.
Goldman Sachs Group Inc (NYSE: GS), Citigroup Inc (NYSE: C), Bank of America Corp’s (NYSE: BAC) funding banking division BofA Securities and JPMorgan Chase & Co (NYSE: JPM) will act as representatives of the underwriters for each the choices.
Why It Issues
Based on American Airways, the raised funds can be deployed for “general corporate purposes” and to reinforce the provider’s liquidity place.
Part of the proceeds from the sale and the borrowings can be used to refinance the airways’ delayed draw time period loan facility scheduled for March 2021.
American Airways is following Southwest Airways Co (NYSE: LUV), which mopped up $four billion in its April sale of 70 million shares and an additional $2 billion by promoting convertible notes due in 2025.
United Airways Holdings Inc (NASDAQ: UAL) has additionally raised over $1 billion promoting shares throughout the pandemic.
price Motion
American Airways shares traded 1.38% decrease at $15.78 within the after-hours session on Friday. The shares had closed the common session 2.97% decrease at $16.
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