American Airlines To Sell $7.5bn Of Bonds And Leveraged Loans To Repay Government Debt
American Airlines Group Inc has said that it will sell $7.5 billion of bonds and leveraged loans backed by its loyalty programme to repay US government debt.
While US airlines received billions of dollars in federal grants to cover payroll costs over the past year, American also secured up to $7.5 billion of term loans from the US Treasury to help it navigate the coronavirus pandemic.
Under the deal, American will issue a private offering of notes worth approximately $5 billion, half due in 2026 and half in 2029, and a $2.5 billion term loan credit facility.
In January, the airline authorised a $1 billion stock sale, following an ongoing $1 billion offering launched in October to boost liquidity.
American Airlines Inc And AAdvantage Loyalty IP Ltd Intend To Commence The Offering
The company's subsidiary American Airlines Inc and AAdvantage Loyalty IP Ltd - an indirect owned subsidiary - intend to commence the offering.