American Airlines notes lower after analyst downgrade; AMC eyed as liquidity sought

By James McCandless

San Antonio, Dec. 11 – The distressed debt market spent the Friday session focused on the travel and entertainment spaces.

American Airlines Group Inc.’s notes shifted lower after the company, along with the industry, received an analyst downgrade.

The 5% senior notes due 2022 fell 1 point to close at 87 bid. The 11¾% senior notes due 2025 shaved off ½ point to close at 114½ bid.

On Friday morning, the Fort Worth-based air carrier and a group of its industry peers received an analyst downgrade from Deutsche Bank.

An analyst downgraded the company’s common stock to hold from buy, saying that there is not much upside in the sector.

Sector peer United Airlines Holdings, Inc.’s issues were similarly weaker.

In the movie theater space, AMC Entertainment Holdings, Inc.’s paper varied in direction after warning that it could run out of capital by next month.

The 12% notes due 2026 shot up 3 points to close at 24½ bid. The 10½% paper due 2025 declined ½ point to close at 70 bid.

In a Friday filing with the Securities and Exchange Commission, the Leawood, Kan.-based theater operator warned that it needs to raise at least $750 million to continue operations and stave off bankruptcy.

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