American Airlines unveils $7.5bn debt sale to repay government loans

10 March, 2021 12:00 AM printer

NEW YORK: American Airlines Group Inc said on Monday it will sell US$7.5 billion of bonds and leveraged loans backed by its loyalty program to repay US government debt.

While U.S. airlines received billions of dollars in federal grants to cover payroll costs over the past year, American also secured up to US$7.5 billion of term loans from the U.S. Treasury to help it navigate the coronavirus pandemic, report agencies.

Under the deal announced on Monday, American will issue a private offering of notes worth about US$5 billion, half due in 2026 and half in 2029, and a US$2.5 billion term loan credit facility.