AMR plans to price $250 million five-year convertible notes to yield 6.5%-7%, up 15%-20%

By Rebecca Melvin

New York, Sept. 21 - AMR Corp. was expected to price $250 million of five-year convertible senior notes after the close Tuesday that were talked to yield 6.5% to 7% with an initial conversion premium of 15% to 20%, according to a market source.

There is a greenshoe of 15%, or $37.5 million, of notes.

AMR also plans to price a concurrent offering of 30 million shares of common stock.

The registered offering is being sold via joint bookrunners Citigroup Global Markets Inc., Morgan Stanley & Co. Inc. and UBS Investment Bank.

Proceeds of the notes, which will be guaranteed by American Airlines Inc., are for general corporate purposes.

Fort Worth-based AMR is the parent company of American Airlines.

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