AMR will end up the third quarter Wednesday with about $1.1 billion more in cash and short-term investments than it had in hand on June 30.
AMR said Tuesday it expects to have $4.4 billion in cash and short-term investments Sept. 30, including $460 million in restricted cash. Exclude the restricted funds, and we’re probably talking just over $3.9 billion in liquidity.
By comparison, the June 30 number was $3.3 billion, including the same $460 million in restricted cash. Excluding the restricted money, AMR had $2.8 billion on hand.
The parent of American Airlines was a very busy borrower and money raiser in September, as we’ve previously noted. It raised $4.2 billion in September, including $400 million gross in a stock sale that closed Monday and a $1 billion sale of frequent-flier miles.
In addition, it said American has fully repaid its $432 million bank loan facility, and it’ll replace the loan facility with the $450 million sale of senior secured notes that American announced last week. The money will show up in AMR’s Dec. 31 cash balance.
AMR also said that a credit card processor had released a holdback of funds it was keeping in reserve. AMR didn’t disclose that amount Tuesday, but had said Sept. 17 that the amount was about $280 million. That will show up in the Sept. 30 numbers.
Said AMR chairman, president and CEO Gerard Arpey: “We believe AMR has been able to secure these strong votes of confidence from our strategic partners and the investment community by honoring our financial obligations in the past and looking out for the long-term interests of our stakeholders – and we believe these recent financings reflect that history.”
“As we strive for sustained profitability, the new liquidity and long-term financing we were able to obtain amid challenging credit markets have buttressed our financial foundation and added flexibility to our near-term and future plans.”