April 1 - American Airlines Group Inc. and its subsidiary, American Airlines, Inc., announced that they have repaid in full $2.8 billion of revolving loans, in the aggregate, under three separate revolving credit facilities in a liquidity-neutral transaction. American borrowed the $2.8 billion in April 2020 in response to the coronavirus (COVID-19) pandemic and its impact on the demand for air travel.

 

The revolving credit facilities are supported by 18 lending institutions. American is able to draw upon the revolving commitments again or leave them undrawn as needed upon the terms of the underlying credit agreements until such commitments expire, substantially all of which is currently scheduled to occur in October 2024. By repaying the revolving credit facilities, American’s total outstanding debt is reduced by $2.8 billion, but its total available liquidity — both cash and readily available access to cash — is unchanged.

 

“Since the beginning of the pandemic, American has had incredible support from the public markets and all of our banking partners,” said American’s Chief Financial Officer Derek Kerr. “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.”

 

 

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