American Airways has repaid $2.eight billion in revolving loans, within the mixture, below three separate revolving credit score services 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 services are supported by 18 lending establishments.
American is in a position to attract upon the revolving commitments once more or go away them undrawn as wanted upon the phrases of the underlying credit score agreements till such commitments expire, considerably all of which is presently scheduled to happen in October 2024.
By repaying the revolving credit score services, American’s complete excellent debt is diminished by $2.eight billion, however its complete obtainable liquidity — each money and available entry to money — is unchanged.
“Because the starting of the pandemic, American has had unimaginable assist from the general public markets and all of our banking companions,” mentioned American chief monetary officer, Derek Kerr.
“Our trade nonetheless has an extended option to go till we’re effectively, however we’ve now raised sufficient further liquidity that we’re snug repaying this debt.
“We’re grateful to our banking companions for his or her ongoing assist, and we stay dedicated to rewarding their confidence in American with stable returns on their investments.”
American Airways final month accomplished a $10 billion financing deal backed by its AAdvantage program.