(RTTNews) – American Airlines Group Inc. (AAL) announced a proposed private offering of $1.5 billion aggregate principal amount of secured senior notes due 2025.
The company also said it intends to enter into a new $500 million Term Loan B Facility due 2024 concurrently with the closing of the offering of the Notes.
American Airlines plans to use a portion of the net proceeds from the offering of the Notes and borrowings under the Term Loan to refinance its delayed draw term loan facility that was entered into on March 18, 2020 and scheduled to mature on March 17, 2021.
The remainder of the proceeds will be used for general corporate purposes and to enhance the company’s liquidity position.
According to the company, the final terms and amounts of the Notes and the Term Loan are subject to market and other conditions, and may be materially different than expectations.