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American Airlines announces stock offering of 38.5 million shares

American Airlines announces stock offering of 38.5 million shares

FILE PHOTO: A member of a ground crew walks past American Airlines planes parked at the gate during the coronavirus disease (COVID-19) outbreak at Ronald Reagan National Airport in Washington, US, Apr 5, 2020. (Photo: REUTERS/Joshua Roberts)

FORT WORTH, Texas: American Airlines Group announced a proposed underwritten public offering of 38.5 million shares of its common stock on Tuesday (Nov 10), as the airline looks to boost its liquidity amid falling sales during the coronavirus crisis.

Sole bookrunner Bank of America has priced the offering at US$13 per share, representing a discount of 1.5 per cent to the airline's closing price on Monday, according to sources.

American Airlines said it expects to use the net proceeds from the offering for general corporate purposes.

The airline said it expects to end the fourth quarter with more than US$14.5 billion in total available liquidity, up from US$13.6 billion at the end of the third quarter. 

Up to Monday's close, American's stock had fallen 54 per cent this year, underperforming a 6.5 per cent rise in the Dow Jones Transport Average index .

Source: Reuters/kv

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