AMR overnight $300 million convertible talked at 4.0-4.5%, up 40-45%

Nashville, Feb. 9 - AMR Corp., parent of American Airlines Inc., launched $300 million of 20-year convertibles talked to yield 4.0% to 4.5% with a 40% to 45% initial conversion premium for pricing before Tuesday's open.

Credit Suisse First Boston is sole bookrunner of the registered offering. Morgan Stanley & Co. is joint lead manager.

The senior notes will be non-callable for five years with puts in years five, 10 and 15.

There also is a contingent conversion trigger of 120%.

Holders will have full dividend protection.

There is a $45 million greenshoe available.

The issue also is guaranteed by American Airlines.

Fort Worth, Texas-based AMR said proceeds would be used for general corporate purposes.

AMR's 4.25% convertible due 2023 on Monday lost 1.5 points to 118.5 bid, 119.25 offered. The underlying stock closed down 30 cents, or 1.87%, to $15.75. In after-hours trading, the stock was down another 59 cents, or 3.75%.

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