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Last updated on April 24, 2014 at 1:21 EDT

American Airlines to sell $520M in debt

June 30, 2009

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.

The debt will be secured with 16 new Boeing 737s and four new Boeing 777 jetliners using certificates that mature in 10 years.

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.


Source: upi