American Airlines has priced its offering of 74.1 million shares or approximately $1,000.4 million of its common stock at a public price of $13.50 and its offering of $1bn of convertible senior notes due 2025 at 6.50%. Both transactions were upsized from the initial $750 million common stock and $750 million senior notes offering.
Both offerings have a 30-day option and addition $150.1 million shares and $150 million convertible notes to cover over-allotments.
American Airlines plans to ill use the proceeds for general corporate purposes and to enhance its overall liquidity position.
Goldman Sachs, Citigroup, BofA Securities and JPMorgan are the joint active bookrunners.
Both offerings are expected to close on June 25, 2020.
Alaska Air launches $674.244m EETC
On June 22, 2020, Alaska Air launched the private offering of $674.244million Class A Enhanced Equipment Trust Certificates (EETC), Series 2020-1A.
The notes are secured on a portfolio of 43 aircraft – 20 Boeing 737-890 aircraft, each delivered new to Alaska Airlines from March 2007 to March 2009, 11 Boeing 737-990ER aircraft, each delivered new to Alaska Airlines from December 2017 to March 2019, and 12 Embraer E175 LR aircraft, each delivered new to Horizon from August 2017 to November 2018.
Alaska Air will use the proceeds for general corporate purposes.