By Rebecca Melvin
New York, Sept. 22 - AMR Corp. priced an upsized $400 million of five-year convertible senior notes after the close Tuesday at par to yield 6.25% with an initial conversion premium of 20%, according to a syndicate source.
The deal was initially talked at $250 million in size.
The bonds priced beyond the rich end of talk for the coupon, which was 6.5% to 7%, and at the rich end of talk for the initial conversion premium, which was 15% to 20%.
There is a 15% greenshoe, or $60 million.
AMR also priced a concurrent offering of $400 million of common stock at $8.25 per share.
Citigroup Global Markets Inc., Morgan Stanley & Co. Inc. and UBS Investment Bank were joint bookrunners of both offerings.
The notes are non-callable for life, with no puts. There is dividend and takeover protection.
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.
| Issuer: | AMR Corp.
|
| Guarantor: | American Airlines Inc.
|
| Issue: | Convertible senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Morgan Stanley & Co. Inc. and UBS Investment Bank
|
| Amount: | $400 million, upsized from $250 million
|
| Greenshoe: | $60 million, upsized from $37.5 million
|
| Maturity: | Oct. 14, 2014
|
| Concurrent offering: | $400 million of common stock, at $8.25 per share
|
| Coupon: | 6.25%
|
| Price: | Par, $1,000
|
| Yield: | 6.25%
|
| Conversion premium: | 20%
|
| Call protection: | Non-callable for life
|
| Puts: | None
|
| Price talk: | 6.5%-7%, up 15%-20%
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Pricing date: | Sept. 22
|
| Distribution: | Registered
|
| Stock symbol: | AMR
|
| Stock reference price: | $8.25
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
