 "American Airlines to offer $5 billion in notes to repay government debt")
American Airlines Group Inc said on Monday it intends to privately offer notes worth about $5 billion to pay down government debt.
The US airline, which has been hard hit by the Covid-19 pandemic, would also enter into a $2.5 billion term loan credit facility backed in part by its loyalty program AAdvantage.
American Airlines said it will use the proceeds to repay the outstanding amount from the loan with the US Treasury, that is currently secured by collateral, and for general corporate purposes.
In January, the airline authorized a $1 billion stock sale, following an ongoing $1 billion offering launched in October to boost liquidity.
The company's subsidiary American Airlines Inc and AAdvantage Loyalty IP Ltd - an indirect owned subsidiary - intend to commence the offering.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%