AMR plans to sell 30M shares, issue $250M in debt

DALLAS (AP) — The parent of American Airlines will issue more than $500 million worth of stock and debt to raise cash as it heads into the slower fall and winter travel season.

AMR Corp. said Monday it would issue 30 million shares plus up to 4.5 million more to cover overallotments. At Monday's closing price of $9.03, total proceeds would range from $270.9 million to $311.5 million.

And it will sell $250 million worth of senior notes that can convert to stock, with up to $37.5 million additional notes available for overallotments.

Those moves come four days after AMR announced it had lined up $2.9 billion in new financing by selling miles in its frequent-flier program and mortgaging planes, including sale-leaseback deals on jets it doesn't even own yet.

American officials said last week that their actions should remove any doubts about the company's liquidity.