American Airlines has announced an offering of $750 million common stock and $750 million of convertible senior notes due 2025.
Both offerings have a 30-day option and addition $112.5 million shares and $112.5 million convertible notes.
America will use the proceeds for general corporate purposes and to enhance its liquidity position.
Goldman Sachs, Citigroup, BofA Securities and JPMorgan are the joint active bookrunners.
American has also announced a private offering of $1.5 billion secured senior notes due 2025 as well as a new $500 million Term Loan B Facility due 2024. A portion of the proceeds from the offering and loan will refinance its delayed draw term loan facility from March 18, 2020, which is scheduled to mature on March 17, 2021, with the remainder for general corporate purposes and again to boost its liquidity position.
The notes and the term loan will be pari passu obligations secured (i) on a first lien basis by a diverse pool of certain slots, gates and routes collateral American uses to provide non-stop scheduled air carrier services between certain airports in the US and certain airports in Australia, Canada, the Caribbean, Central America, China, Hong Kong, Japan, Mexico, South Korea, and Switzerland, and (ii) on a second lien basis by a pool of certain slots, gates and routes collateral American uses to provide non-stop scheduled air carrier services between certain airports in the US and certain airports in the European Union and the UK.