June 30, 2009
American Airlines to sell $520M in debt
American Airlines intends to sell $520 million in secured debt backed by 20 new planes appraised at $1.1 billion, a U.S. regulatory filing said.
The U.S. air carrier filed a notice of the sale with the Securities and Exchange Commission, the Forth Worth (Texas) Star-Telegram reported Tuesday.
To survive declining revenues during the economic downturn, American recently restructured a $433 million loan.
Industry analyst Hunter Keay at Stifel Nicolaus wrote that
access to capital markets has been a well-known key to AMR's survival and while the terms on this specific offering are poor by historic standards, it is an incrementally positive sign that the company is able to raise cash.
AMR is the airline's parent company.