American Airlines to offer $5 billion in notes to repay government debt

(Reuters) - American Airlines Group Inc said on Monday it intends to privately offer notes worth about $5 billion to pay down government debt.

The U.S. 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 U.S. 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.

(Reporting by Sanjana Shivdas in Bengaluru; Editing by Bernard Orr and Sriraj Kalluvila)

03/08/2021 13:24

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