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American Airlines in Talks for $2 Billion Junk-Bond Sale

  • Five-year debt offering may emerge as soon as next week
  • American follows deals from Delta, Southwest and JetBlue
American Airlines
Photographer: Andrew Harrer/Bloomberg
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American Airlines Group Inc. is seeking to raise around $2 billion from a junk bond offering that may emerge as soon as next week, according to people with knowledge of the matter.

The company is sounding out investors for a potential five-year secured note that cannot be repaid for the life of the bond at a yield of 11%, said the people, who asked not to be named because the talks are private. Discussions around the terms of the offering, including the yield, are preliminary and could change, the people said.