American Airlines upsizes, prices $10 billion bond and loan offering

FILE PHOTO: American Airlines passenger planes crowd a runway where they are parked due to flight reductions to slow the spread of coronavirus disease (COVID-19), at Tulsa International Airport in Tulsa

(Reuters) – American Airlines Group Inc upsized and priced a $10 billion bond and loan offering, supported by its AAdvantage loyalty program, the carrier said on Wednesday.

The offering consists of $6.5 billion of high-yield bonds and $3.5 billion of leveraged loans, American Airlines said.

The company said it plans to use part of the proceeds to repay government debt.

(Reporting by Ankit Ajmera in Bengaluru; Editing by Shounak Dasgupta)