American Airlines seeks new financing
The company expects to use net proceeds from the stock and convertible notes offerings to enhance its liquidity position
Stocks impacted: American Airlines Group Inc. (AAL)
American Airlines plans to raise $3.5 billion in new financing in an effort to improve its liquidity as it grapples with travel restrictions caused by Covid-19. The company plans to raise US$1.5 billion by selling shares and convertible senior notes due 2025. Also, it will sell $750 million in shares and another $750 million in senior convertible notes due in 2025, and will enter a $500 million loan facility. As a reminder, last week, the company said it was seeking to raise around $2 billion from a junk bond offering. The publicly-traded airline holding company expects to use net proceeds from the stock and convertible notes offerings for general corporate purposes and to enhance its liquidity position. American Airlines Group stocks finished nearly 3% lower on Friday. Since January, shares declined nearly 45%.
Make profit on it right now!