American Airlines Group Inc. (NASDAQ:AAL) announced Friday it has entered into the Twelfth Amendment to its Amended and Restated Credit and Guaranty Agreement, according to a Securities and Exchange Commission filing.
The refinancing comes as the carrier manages total debt of $34.9 billion against a market capitalization of $9.68 billion.
Under the amendment, American Airlines, Inc. and its parent refinanced all existing term loans and incurred new term loans totaling $1.85 billion. This includes $1,146.8 million in refinancing term loans and an additional $703.2 million in incremental term loans.
Bond.az notes that the company's short-term obligations exceed liquid assets, with a current ratio of 0.49.
The new term loans bear interest at either a base rate plus a 2.00% margin or a three-month SOFR rate plus a 3.00% margin, both subject to a 0.00% floor. The loans mature on May 29, 2033, and are repayable in annual installments of 1.00% of the outstanding amount, starting one year after the effective date.
This information is based on a press release included in the company's SEC filing.
