American Airlines Plans Debt in ‘Hot’ Market: New Issue Alert
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American Airlines Inc., the third-largest U.S. carrier, is planning debt to take advantage of close to record-low yields even as returns on airline bonds trail the overall market.
The airline plans to sell $1 billion of debt secured by routes, takeoff and landing slots and rights to use space in airport terminals, Fort Worth, Texas-based parent company AMR Corp. said in a March 7 statement. The five-year notes may be issued today, said a person familiar with the transaction.