American Airlines discloses offering of 38.5 million shares

American Airlines Group has announced a proposed underwritten public offering of 38.5 million shares of its common stock, revealed in a disclosure released on November 10, in an effort to “enhance the company’s liquidity position” as demand for air travel continues to falter. The American Airlines (AA, Dallas/Fort Worth) parent said in a separate statement that it had priced its underwritten public offering but provided no further details except that it had hired BofA Securities to sell the shares in one or more transactions in the over-the-counter market on the Nasdaq. According to Reuters, the sole bookrunner Bank of America priced the offering at USD13 per share, reflecting a discount of 1.5% on the airline’s closing price on Monday, November 9. “The company expects to use the net proceeds from the offering for general corporate purposes and to enhance the company’s liquidity position,” the airline said. American Airlines revealed in a stock exchange filing on the same date that it “expects to end the fourth quarter of 2020 with more than USD14.5 billion in total available liquidity,” which is an increase from USD13.6 billion declared at the end of the third quarter.