Originally Posted by
Excargodog
Well, this summer they sold junk bonds at 12%. I don’t know if those bonds were callable or not. I would think not though.
https://www.bloomberg.com/news/artic...-for-liquidity
They also raised a billion from sales of shares and another billion from the sales of convertible bonds. But I doubt that they can buy those back - at least not the shares - until they can pay back the federal loans they took under CARES 1 since that prohibits share buyback. And since the money they borrowed under Cares1 is currently theIr cheapest source for borrowing, I don’t think they will be doing share buybacks any time soon.
And Fitch just downgraded some bonds (and affirmed others) based upon (Mainly) the Decrease in the value of the used aircraft collateralizing the aircraft because of today’s depressed used aircraft market:
https://www.fitchratings.com/researc...tcs-16-10-2020
Senior Tranches
Fitch has affirmed most of American's senior EETC tranches, and downgraded one tranche. Several senior tranches remain on Rating Watch Negative, as described below.
Fitch has downgraded the class A certificates for American's 2013-1 class A certificates to 'BBB' from 'BBB+'. The downgrade was primarily driven by updated appraisal data for the 777-300ERs that secure the transaction that indicate lower levels of overcollateralization than was expected in prior reviews