Newsroom – American Airlines prepays US Treasury Department guaranteed loan, terminates loan agreement

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FORT WORTH, Texas – American Airlines Group Inc. (NASDAQ: AAL) today closed its previously announced $ 10 billion financing supported by the AAdvantage® program and used a portion of the proceeds to prepay its secured loan by the US Department of the Treasury. In doing so, American terminated its loan commitments under the secured loan agreement.

The CARES (Coronavirus Aid, Relief, and Economic Security) law established a $ 25 billion guaranteed loan facility for U.S. airlines in response to the global pandemic. American received $ 7.5 billion under the loan program, with the AAdvantage program being pledged as collateral. The term of the loans made under the facility was approximately five years.

American borrowed $ 550 million from the facility in September 2020 and, under the terms of the loan program, issued Treasury Department warrants to purchase up to 4,396,483 American common shares at 12.51 $ per share. To date, American has prepaid the $ 550 million and terminated the loan agreement.

“This prepayment is a shining example of the importance of the CARES Act,” said Doug Parker, president and CEO of American. “Our industry was in danger of shutting down a year ago when the CARES Act was passed. This important legislation, including the $ 25 billion secured loan program for airlines, demonstrated that our leaders understand the challenges our economy faces, and their swift action has stabilized our industry and maintained our workforce. work intact.

“American could not have borrowed $ 7.5 billion against our AAdvantage program during the uncertainty of 2020, but the CARES Act provided the bridge that allowed us to effectively raise $ 10 billion in public markets earlier. this month. We wouldn’t be where we are today without this bipartisan support, and it’s something we will never take for granted. We recognize that we have a responsibility to continue to respond fully. security to the transportation needs of our country, and we are pleased to have provided a solid return to taxpayers on this loan. We are delighted to support the reopening of the economy as our fellow citizens and neighbors around the world return to the skies . “

About the American Airlines Group
The purpose of American is to care for people on the journey of life. American Airlines Group Inc. shares trade on the Nasdaq under the ticker symbol AAL and the company’s shares are included in the S&P 500. Learn more about what’s happening at American by visiting news.aa.com and connect with American on Twitter @AmericanAir and on Facebook.com/AmericanAirlines.



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