American Airways has repaid $2.eight billion in revolving loans, within the mixture, below three separate revolving credit score amenities in a liquidity-neutral transaction.
American borrowed the $2.eight billion in April final yr in response to the Covid-19 pandemic and its impression on the demand for air journey.
The revolving credit score amenities are supported by 18 lending establishments.
American is in a position to attract upon the revolving commitments once more or depart them undrawn as wanted upon the phrases of the underlying credit score agreements till such commitments expire, considerably all of which is at present scheduled to happen in October 2024.
By repaying the revolving credit score amenities, American’s whole excellent debt is lowered by $2.eight billion, however its whole out there liquidity — each money and available entry to money — is unchanged.
“For the reason that starting of the pandemic, American has had unbelievable help from the general public markets and all of our banking companions,” stated American chief monetary officer, Derek Kerr.
“Our business nonetheless has a protracted method to go till we’re properly, however we have now now raised sufficient further liquidity that we’re snug repaying this debt.
“We’re grateful to our banking companions for his or her ongoing help, and we stay dedicated to rewarding their confidence in American with stable returns on their investments.”
American Airways last month accomplished a $10 billion financing deal backed by its AAdvantage program.
