American Airlines reduces their outstanding debt by $2.8 Billion by repaying revolving credit facilities
American Airlines Group Inc. as well as its subsidiary, American Airlines, Inc. (” American”), today announced that they have actually paid off in full $2.8 billion of rotating finances, in the accumulation, under 3 different revolving credit scores facilities in a liquidity-neutral purchase. American obtained the $2.8 billion in April 2020 in action to the corona virus (COVID-19) pandemic and also its effect on the demand for flight.
The revolving credit centers are sustained by 18 lending institutions. American has the ability to draw upon the revolving financial undertakings once again or leave them un-drawn as needed in compliance with the terms of the underlying credit contracts until such dedications end. Most of these expires are currently set up to happen in October 2024. By paying off the revolving credit facilities, American’s overall outstanding debt is cut by $2.8 billion, yet its overall offered liquidity in terms of both cash, as well as easily available access to cash remains almost unchanged.
American’s Chief Financial Officer Derek Kerr said:
” Since the beginning of the pandemic, American has had incredible support from the public markets and all of our banking partners…[we] 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.
He went on to say that they are grateful to our financial partners for their continuous assistance and that they were committed to repaying their confidence in American by generating good returns on their investments.
Image Credit: American Airlines
More Info: American Airlines