American Airline Group Inc. (AAL) has made public its plan in which it seeks to secure $3.5 billion in upcoming financing round. The airline will use cash to revive its operations which have been greatly affected after coronavirus pandemic stroke a heavy blow to the aviation industry worldwide.
The airline is looking forward to sell shares and convertible bonds bearing a 2025 maturity date in which it will fetch them $1.5 billion. In addition, American Airline says it will further offer senior secured notes worth $1.5 billion.
The airline is additionally looking forward to entering into a new $500 million term loan facility agreement with a 2024 maturity date.
American Airlines will put all the proceeds into one basket and direct the cash into enhancing its liquidity position and for general corporate purposes.
The stock and convertible notes will come with a 30 day option for underwriters to buy up to $112.5 million of additional common shares and up to $112.5 million of additional convertible notes.
JPMorgan Chase & Co. (JPM), Bofa securities, Citigroup Inc. (C) and Goldman Sachs Group Inc. (GS) will serve as representatives for the underwriters.