American Airlines in record $10bn debt sale backed by frequent-flyer programme
The carrier is now selling $6.5bn worth of bonds and $3.5bn worth of of loans, the largest-ever debt sale by an airline
10 March 2021 - 16:56
New York — American Airlines Group has boosted the size and cut borrowing costs on what’s now a $10bn debt deal backed by its frequent-flyer programme, making it the largest ever by an airline.
The carrier is now selling $6.5bn worth of bonds and $3.5bn worth of of loans, up from $5bn and $2.5bn, respectively, according to people familiar with the matter. Each of the bond tranches, which mature in five and eight years, may yield about 5.75% and 6%, respectively, lower than initial discussions in the low-to-high 6% range...
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