DOW JONES NEWSWIRES
AMR Corp. (AMR) expects to end the third quarter with about $4.4
billion in cash and short-term investments, after raising about
$830 million in stock and note sales aimed at boosting liquidity
while the American Airlines parent copes with sagging travel
demand.
Companies of all stripes have been tapping equity and debt
markets in recent months to raise capital, with many looking to pay
down near-term borrowings.
The airline said Tuesday that it repaid its $432 million secured
bank term loan facility, which will be refinanced using the
proceeds of its private sale of $450 million in senior secured
notes. That sale is expected to be completed Oct. 9.
AMR also said the full amount of the reserve previously held by
its credit card processor was released to American Tuesday.
The airline and its parent announced about $4.2 billion in new
capital and aircraft financing this month. Earlier in the year, AMR
raised more than $1.2 billion in private and public financings of
aircraft it owns and financing of new 737s to be delivered through
2011.
Chairman and Chief Executive Gerard Arpey said the new liquidity
and financing "have buttressed our financial foundation and added
flexibility to our near-term and future plans."
AMR's shares recently traded at $8.05, up 0.6%. The stock has
lost about one-quarter of its value this year.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com