Discuss:
CNBC: American Airlines plans $5 billion bond sale backed by frequent flyer program to pay back other debt- March 8, 2021
https://www.cnbc.com/2021/03/08/amer...r-program.html
Sounds like AA doesn't like the government's money. Do we have any assets left to leverage?
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EDIT: I suspect AA doesn't like this term in their lending agreement with the treasury because I remember saying to myself the same thing:
"The transaction agreement includes covenants by the Company to comply with certain restrictions on employee compensation, stock repurchases, dividends, and reductions in employment levels, as required by the CARES Act. Treasury will receive warrants to purchase common stock equal to 10% of the total loan amount drawn."
So we are just going to get the money elsewhere with more favorable terms. I also learned a thing... We incorporated AAdvantage in the Caymans.. love it