American Airlines Repays Revolving Credit Facilities, Reduces Debt by $2.8 Billion
American Airlines has repaid in full $2.8 billion in three separate revolving credit facilities in a liquidity-neutral transaction, fully satisfying $2.8 billion borrowed in April 2020 in response to the global COVID-19 pandemic.
On Wednesday (March 31, 2021), American Airlines announced that they have repaid in full three separate credit facilities totaling $2.8 billion, in a liquidity-neutral transaction. The carrier borrowed $2.8 billion in April 2020 in response to the global COVID-19 pandemic. The revolving credit facilities are backed by 18 lending institutions and the airline reserves the right to draw on them or leave them undrawn until expiration, which is substantially scheduled for October 2024. While the repayment reduces American’s debt by $2.8 billion, it does not impact the airline’s current liquidity position.
In Wednesday’s announcement, American Airlines’ Chief Financial Officer, Eric Kerr, said,
“Since the beginning of the pandemic, American has had incredible support from the public markets and all of our banking partners. Our industry still has a long way to go until we are well, but we have now raised enough additional liquidity that we are comfortable repaying this debt. We are grateful to our banking partners for their ongoing support and we remain committed to rewarding their confidence in American with solid returns on their investments.”
American Airlines’ purpose is to “care for people on life’s journey.” Shares in the American Airlines Group, Inc., trade on NASDAQ under the ticker symbol AAL and the company’s stock is included in the S&P 500.
Source: American Airlines