| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers T > Headlines for Tenders > News item |
American Airlines: Further preferred stock conversion set for March
By Jennifer Chiou
New York, Feb. 7 - American Airlines Group Inc. announced that holders of 41,963,700 of its series A convertible preferred stock are set to have those shares converted into common stock at the close of business on Feb. 7, and the company said an additional 41,963,700 of the preferreds will be mandatorily converted on March 9.
According to a news release, the conversion price used for determining the number of issuable shares is $32.7136.
For each $1,000 of preferreds, holders will receive 30.56 common shares. In other words, each preferred is to be converted into 0.7722 shares.
The optional conversion period for the March 9 date opens on Feb. 13.
In mid-January, the company said that holders opted to convert 36,309,291 of the preferred shares in the second optional conversion period.
As reported, the conversion notices exceeded the optional conversion cap of 10 million shares of convertible preferreds, so the conversion cutoff for the second conversion period occurred as of the start date.
Additional distributions
Holders of AMR Corp.'s 6.25% convertible senior notes due 2014 who elected to be treated as if they held AMR common stock are to receive 19.1795 shares of American Airlines for each $1,000 principal amount of notes on Feb. 10.
Holders of AMR's 4.5% convertible senior notes due 2024 who elected to be treated as if they held AMR common stock are to receive 8 shares of American Airlines for each $1,000 principal amount of notes on Feb. 10.
Also under the company's plan, 1.2756 million shares are being distributed as part of the labor common stock allocation.
The American Airlines holding company is based in Fort Worth.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.