Amr Sells $300,000,000 Senior Convertible Notes

[WingNaPrayer]

AMR Sells $300,000,000 Senior Convertible Notes due 2024 to Credit Suisse First Boston LLC and Morgan Stanley & Co. Inc.

This is a LONG Read!

 

[desertfox]

Increased fuel expense for the summer??

 

[aislehopper]

Bibles?

 

[NewHampshire Black Bears]

A. Pensions
B. Acquisition(s)

NH/BB's

 

[desertfox]

OH OH....I got it......TWA seniority settlement!!

 

[MCI transplant]

desertfox------ I like that one! At least you have a sence of hummor! Could it have something to do with the Shuttle?

 

[MCI transplant]

<_< Or I know! They're going to make MCI into a state of the art Overheal Base, shut down Tulsa! And move everything here!!!!! Yea! I like that!!!

 

[hoov]

Give Senior Management LARGE RAISES! :down:

 

[FWAAA]

As with most other debt and convertible sales by AMR over the past year, the "cushion" is for the payment of maturing debt, followed by pension contributions.

 

[MCI transplant]

Even better! Company to loan the TWU money to help fight AMFA! TWU to repay loan, with interest, by raising all our Union Dues!!!!

 

[LiveInAHotel]

I'm willing to bet it's for the US Airways Shuttle. AA did put a bid in for it and how else do they plan on paying for it? I'm sure by selling the notes those "Golden Parachutes" will get a kick back of some kind.

 

[NewHampshire Black Bears]

I'm willing to bet it's for the US Airways Shuttle. AA did put a bid in for it and how else do they plan on paying for it? I'm sure by selling the notes those "Golden Parachutes" will get a kick back of some kind.

Hotel;
The funny thing(IMHO), is that AA does'nt REALLY want the shuttle. however, AA DEFINITELY DOES'NT want JET BLUE to wind up with it.

NH/BB's

 

[Boomer]

FWAA,

AMR is not required to make pension contributions beyond a minimal level for the next two years.

AMR lobbied Congress for this law.

It is unlikely that AMR lobbied for and obtained relief if they did not intend to excercise the benefits from said relief.

 

[Dea Certe]

I heard a rumor that AMR had made an offer for the US Airways Shuttle. (I didn't read the link, too lazy) Rumor had it that AMR wanted the routes only, no people nor planes.

You guys still have any aircraft parked?

This could be great news for the furloughed folks at AA.

Bad news for US though....

Dea h34r:

 

[FWAAA]

FWAA,

AMR is not required to make pension contributions beyond a minimal level for the next two years.

AMR lobbied Congress for this law.

It is unlikely that AMR lobbied for and obtained relief if they did not intend to excercise the benefits from said relief.

Although the Senate approved a bill on January 28, has it been signed by the President? To my knowledge, its passage is still uncertain.

In 2003, AMR contributed about $186 million to its defined benefit plans.

In 2004, AMR is expecting to contribute about $600 million to the defined benefit plans. I'd hardly call that "minimal."

These numbers were confirmed by the CFO in the 4th Quarter conference call last month.

If the pension relief bill is signed, the Senate version allows companies to pay only 20% of their deficit makeup payments in 2004; for AA, that would mean at least $120 million of pension contributions in 2004 (and probably more). That's hardly minimal.

Of course, I've been wrong before, so I welcome you proving me wrong. Perhaps you have a link to a news story celebrating the good news. Alternatively, perhaps you could provide a citation to the federal legislation.