New Issue: AMR $300 million convertible yields 4.25%, up 32%

Nashville, Sept. 17 - AMR Corp. sold a revived convertible deal, issuing $300 million of 20-year convertible notes at par to yield 4.25% with a 32% initial conversion premium via sole lead manager Citigroup.

In early August, the American Airlines Inc. parent was pitching a $250 million deal talked to yield 6.25% to 6.75% with a 40% to 45% initial conversion premium. That deal was withdrawn due to unfavorable "market conditions."

The issue is guaranteed by American Airlines and interest payments are deferrable.

Terms of the new deal are:

Issuer: AMR Corp.

Issue:	Convertible senior notes
Bookrunner:		Citigroup
Amount	$300 million
Greenshoe:	$50 million
Maturity:	Sept. 23, 2023
Coupon:	4.25%
Price:	Par
Yield:	4.25%
Conversion premium:	32%
Conversion price:	$17.36
Conversion ratio:	57.61
Call:	Sept. 23, 2008 onwards
Put:	In years 5, 10 and 15
Pricing date:	Sept. 17, after the close
Settlement:	Sept. 23
Distribution:	Rule 144A

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