American Airlines to raise $3.5 billion in new financing

22.06.2020 - Korneychuk Evgeniya
American Airlines to raise $3.5 billion in new financing

On Sunday, American Airlines Group Inc. (AAL) said that it is planning to raise as much as $3.5 billion from stock and notes offerings, as the ailing U.S. carrier grapples with the financial fallout of the travel restrictions caused by the coronavirus outbreak.

According to the airline company, its revitalized funding would help boost its liquidity.

American Airlines said that it plans to raise $1.5 billion in senior secured notes due in 2025. It would sell $750 Million in shares and another $750 Million in senior convertible notes. The company added that it would also enter a $500 Million loan facility.

The representatives for the underwriters would be Goldman Sachs & Co. LLC, Citigroup, BofA Securities, and JP Morgan.

American Airlines’ shares were down by 3% to $16 on Friday.

“We view the shares as a contrarian play and a stock that is likely to outperform as demand improves,” Cowen & Co’s Five-star Analyst Helane Becker wrote in a note to investors.

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue

Help with deposit?