American Airlines Group Inc stated on Sunday it prepares to secure US$3.5 billion in new financing, to improve the airline’s liquidity as it deals with travel restrictions led by the coronavirus crisis.
The company prepares to raise $1.5 billion by selling shares and convertible senior notes due 2025, the airline stated.
Furthermore, the airline said it will offer $1.5 billion in senior secured notes and that it aims to enter into a new $500 million term loan facility due 2024.
The airline expects to use the net proceeds from the stock and convertible notes offerings for general corporate purposes and to improve its liquidity position, the airline said.
The stock and convertible notes offerings, initially reported by Bloomberg News, include a 30-day option for the underwriters to buy up to $112.5 million of additional common shares and up to $112.5 million of additional convertible notes respectively, the company stated.
American Airlines and Delta Air Lines Inc stated recently that a modest recovery in demand was helping to slow daily cash burn rates in June after the US reported record low passenger numbers in April following the spread of the coronavirus.