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American Airlines Group Announces Pricing of Offerings of Common Stock and 6.50% Convertible Senior Notes Due 2025
FORT WORTH, Texas, June 23, 2020 (GLOBE NEWSWIRE) -- American Airlines Group Inc. (NASDAQ: AAL) (the “Company”) today announced that it priced its
About this update from American Airlines Group, Inc.
[{"type":"text","content":"FORT WORTH, Texas, June 23, 2020 (GLOBE NEWSWIRE) -- American Airlines Group Inc. (NASDAQ: AAL) (the “Company”) today announced that it priced its underwritten public offering of 74,100,000 shares of its common stock (the “Common Stock”) (or approximately $1,000.4 million of shares of its Common Stock) at a public offering price of $13.50 per share (such offering, the “Common Stock Offering”) and its underwritten public offering of $1,000,000,000 aggregate principal amount of its 6.50% convertible senior notes due 2025 (the “Convertible Notes” and such offering, the “Convertible Notes Offering”). The size of the Common Stock Offering was increased from the previously announced $750,000,000 of shares of Common Stock and the aggregate principal amount of the Convertible Notes Offering was increased from the previously announced $750,000,000. The aggregate net proceeds to the Company from the Common Stock Offering and the Convertible Notes Offering, after deducting underwriting discounts and other offering expenses, are expected to be approximately $1,936.2 million. The Company expects to use the net proceeds from the Common Stock Offering and the Convertible Notes Offering for general corporate purposes and to enhance the Company’s liquidity position.\n The Company has granted the underwriters of the offerings a 30-day option to purchase, in whole or in part, up to 11,115,000 additional shares of Common Stock (or approximately $150.1 million of additional shares of Common Stock) at the public offering price less the underwriting discount in the Common Stock Offering (reflecting an increase from the previously announced option of up to $112,500,000 of additional shares of Common Stock) and a 30-day option to purchase, in whole or in part, up to $150,000,000 aggregate principal amount of additional Convertible Notes in the Convertible Notes Offering (reflecting an increase from the previously announced option of up to $112,500,000 aggregate principal amount of additional Convertible Notes), in each case solely to cover over-allotments, if any. The Convertible Notes will be convertible by holders into shares of Common Stock if certain conditions are met and during certain periods, based on an initial conversion rate of 61.7284 shares of Common Stock per $1,000 principal amount of the Convertible Notes, which is equivalent to a conver...