CHICAGO, Sept 29 (Reuters) - AMR Corp, the parent of American Airlines, said on Tuesday it had completed an offering of common stock and convertible notes, adding $830 million to its cash position.
The latest sale, combined with other recent stock and note offerings, have netted AMR $4.2 billion in liquidity and aircraft financing in September. The company said it expects to end the third quarter with $4.4 billion in cash.
AMR Chief Executive Gerard Arpey said the new liquidity and long-term financing had buttressed the company's financial foundation and added flexibility to its future plans.
The company had offered 48.5 million shares of its common stock and $460 million of its 6.25 percent convertible senior notes due 2014.
AMR also said American has repaid its $432-million secured bank term loan facility, which will be refinanced using the proceeds of American's private sale of $450 million principal amount of senior secured notes. This transaction is expected to be completed on Oct. 9, AMR said.
Shares of AMR were up 0.8 percent at $8.06 in afternoon trading on the New York Stock Exchange.
(Reporting by Kyle Peterson; Editing by Tim Dobbyn) Keywords: AMR/ (kyle.peterson@thomsonreuters.com ; +1 312 408 8581; Reuters Messaging: kyle.peterson.reuters.com@reuters.net ) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The latest sale, combined with other recent stock and note offerings, have netted AMR $4.2 billion in liquidity and aircraft financing in September. The company said it expects to end the third quarter with $4.4 billion in cash.
AMR Chief Executive Gerard Arpey said the new liquidity and long-term financing had buttressed the company's financial foundation and added flexibility to its future plans.
The company had offered 48.5 million shares of its common stock and $460 million of its 6.25 percent convertible senior notes due 2014.
AMR also said American has repaid its $432-million secured bank term loan facility, which will be refinanced using the proceeds of American's private sale of $450 million principal amount of senior secured notes. This transaction is expected to be completed on Oct. 9, AMR said.
Shares of AMR were up 0.8 percent at $8.06 in afternoon trading on the New York Stock Exchange.
(Reporting by Kyle Peterson; Editing by Tim Dobbyn) Keywords: AMR/ (kyle.peterson@thomsonreuters.com ; +1 312 408 8581; Reuters Messaging: kyle.peterson.reuters.com@reuters.net ) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.