AMR greenshoe fully exercised, raising convertibles to $460 million

By Marisa Wong

Milwaukee, Sept. 24 - AMR Corp. announced that the underwriters of its recent offering of 6.25% convertible senior notes due 2014 have exercised the $60 million over-allotment option in full, increasing the size of the offering to $460 million. The offering is expected to close on Sept. 28.

AMR priced an upsized $400 million of five-year convertible senior notes on Sept. 22 to yield 6.25% with an initial conversion premium of 20%. AMR also priced a concurrent offering of $400 million of common stock at $8.25 per share, as previously reported.

Citi, Morgan Stanley, and UBS Investment Bank were joint bookrunners for the offerings.

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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