New Issue: AMR sells $300 million convertible at 4.5%, up 40%

Nashville, Feb. 10 - AMR Corp. sold $300 million of 20-year convertibles at par to yield 4.5% with a 40% initial conversion premium via sole bookrunner Credit Suisse First Boston.

The registered deal priced at the cheap end of price talk for a yield of 4.0% to 4.5%, up 40% to 45%.

Holders will have full dividend protection.

Fort Worth, Texas-based AMR, parent of American Airlines Inc., said proceeds would be used for general corporate purposes.

Terms of the deal are:

Issuer:	AMR Corp.
Guarantor:	American Airlines Inc.
Bookrunner:	Credit Suisse First Boston
Joint lead manager:	Morgan Stanley & Co.
Amount:	$300 million
Greenshoe:	$45 million
Maturity:	Feb. 15, 2024
Coupon:	4.5%
Price:	Par
Yield:	4.5%
Conversion premium:	40%
Conversion price:	$22.05
Conversion ratio:	45.3515
Call:	Non-callable for 5 years
Put:	In years 5, 10 and 15
Contingent conversion:	120%
Price talk:	4.0-4.5%, up 40-45%
Pricing date:	Feb. 9, after the close
Settlement date:	Feb. 13
Distribution:	Registered

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