American Airlines Looks to Raise Another $3.5 Billion in Debt

American Airlines looks to secure another $3.5 billion in loans in an effort to keep itself aloft as it continues to claw back from the coronavirus pandemic.

American Airlines  (AAL) - Get Report plans to bulk up its coffers by another $3.5 billion in an effort to keep itself aloft as it continues to claw back from the coronavirus pandemic that all but halted global air travel.

The carrier plans to raise $3 billion by selling shares and convertible senior notes, half of those due in 2025 and the other half later than that, according to a statement. It also intends to enter into a new $500 million term loan facility due 2024.

The stock and convertible notes offerings include a 30-day option for the underwriters to purchase up to $112.5 million of additional common shares and up to $112.5 million of additional convertible notes respectively, the company said.

Goldman Sachs, Citigroup, BofA Securities and J.P. Morgan will be acting as representatives for the underwriters.

The move comes as airlines continue to do what it takes and what they can to tap various sources of capital to keep themselves running. Delta Air Lines  (DAL) - Get Report, Southwest Airlines  (LUV) - Get Report and JetBlue Airways  (JBLU) - Get Report have all tapped debt markets in recent weeks to boost liquidity.

Airline passenger numbers in the U.S. fell 81% year over year as of June 16, according to the Transportation Security Administration. American this week removed a passenger who refused to wear a face covering and banned him from taking flights in the future.

Shares of American in particular have been gaining altitude following the carrier's announcement that it will boost its July flight schedule as travel restrictions imposed by the coronavirus pandemic begin to ease.

The airline said it plans to fly 55% of its domestic schedule and 20% of international flights in July. In May, American flew just 20% of its domestic schedule and is flying 25% in June.

Shares of American were down 6.13% at $15.02 in trading on Monday. The stock has fallen 44% this year through June 19.