American Airlines planes are parked at the gate during the coronavirus disease (COVID-19) outbreak at Ronald Reagan National Airport in Washington, U.S. [Source: Reuters]
American Airlines Group Inc said on Sunday it plans to raise $1.5 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 $112.5 million of additional common shares and up to $112.5 million of additional notes respectively, the company said.
Goldman Sachs & Co. LLC, 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.
The airline said it also intends to enter into a new $500 million term loan facility due 2024.
