American Airlines calls remaining balance on 7½% notes due 2016

By Tali Rackner

Norfolk, Va., July 24 – American Airlines Group Inc. called all of the remaining $900 million principal amount of its 7½% senior notes due March 15, 2016, according to a press release.

The notes will be redeemed at 103.75 plus accrued interest on Aug. 22.

The company prepaid $100 million of the notes in March at a price of 103 plus accrued interest, as noted in a 10-Q filing with the Securities and Exchange Commission.

Separately, American Airlines announced in June that it plans to prepay $261 million of its obligations associated with special facility revenue bonds in the third quarter, of which $106 million is reflected as debt on the balance sheet.

In addition, the company said it settled all of the outstanding 7.25% convertible notes in May in cash for about $175 million. The bonds were issued by US Airways Group, Inc.

The American Airlines holding company is based in Fort Worth.

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