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American repays US$2.8bn in revolving credit score amenities | Information

American repays Cares Act loans with new funding | News

American Airways has repaid $2.eight billion in revolving loans, within the combination, below three separate revolving credit score amenities in a liquidity-neutral transaction.

American borrowed the $2.eight billion in April final 12 months in response to the Covid-19 pandemic and its affect on the demand for air journey.

The revolving credit score amenities are supported by 18 lending establishments.

American is ready to attract upon the revolving commitments once more or depart them undrawn as wanted upon the phrases of the underlying credit score agreements till such commitments expire, considerably all of which is presently scheduled to happen in October 2024.

By repaying the revolving credit score amenities, American’s complete excellent debt is decreased by $2.eight billion, however its complete obtainable liquidity — each money and available entry to money — is unchanged.

“Because the starting of the pandemic, American has had unimaginable assist from the general public markets and all of our banking companions,” mentioned American chief monetary officer, Derek Kerr.

“Our trade nonetheless has an extended option to go till we’re effectively, however we’ve now raised sufficient further liquidity that we’re comfy repaying this debt.

“We’re grateful to our banking companions for his or her ongoing assist, and we stay dedicated to rewarding their confidence in American with strong returns on their investments.”

American Airways last month accomplished a $10 billion financing deal backed by its AAdvantage program.



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