American announces $663 million private offering to finance aircraft

American Airlines announced a $663 million private offering of enhanced equipment trust certificates that will finance aircraft at the Fort Worth-based carrier, including four new Boeing 777-300ERs scheduled for delivery this summer.

The company received approval for the financing from the bankruptcy court last month so it could pay for the new aircraft and refinance nine existing aircraft in American's fleet. The new equipment certificates will be secured by eight Boeing 737-800 aircraft and one Boeing 777-200ER aircraft that American currently owns and which are either unencumbered or have private mortgage financing.

The notes will also be secured by the four new Boeing aircraft that are scheduled to be delivered between April 2013 and July 2013.

-Andrea Ahles

Comments

[DB]

Why is the first thing to do when you are bankrupt is to repaint 700 airplanes? That will surly get new business.

[whitry]

this airline is a disgrace to the flying public. look at united and delta. they have a better quality of people who fly these airlines. where as American reaps in trashy people who fly American known as the bottom feeder of airline. they take the left overs. they have more destinations in the great mistake of texass because that's where the bottom feeder airline American has more destinations in one state.people in torn jeans and flip flops. what a disgrace.maybe American should be called amerihip hop airlines.