FORT WORTH, Texas,
Nov. 24 /PRNewswire-FirstCall/ -- AMR Corporation
(NYSE: AMR) today announced that its tender offers to purchase for cash any
and all of the outstanding debt securities listed in the table below
("Securities"), having an aggregate principal amount of
$338,352,000, expired
at
5 p.m. New York City time on
Nov. 22, 2006.
According to information provided by Global Bondholder Services
Corporation, the Depositary and Information Agent for the tender offers, a
total of $61,849,344 principal amount of Securities has been tendered. AMR
has accepted for purchase all tendered Securities.
In 2006, AMR has taken several steps to strengthen its balance sheet,
including the issuance of $400 million of common stock and the open market
purchase of $128 million of its debt; in addition, in calendar year 2006 AMR
has scheduled debt amortization of $1.2 billion. Going forward, depending on
market conditions, AMR's cash position and other considerations, AMR may from
time to time redeem or acquire its debt (including Securities that remain
outstanding after consummation of the tender offers) or take other steps to
reduce its debt or lease obligations.
The following table lists the amounts tendered and accepted for purchase
by AMR for each series of Securities.
Aggregate
Principal
Amount
Outstanding Aggregate Principal
Upon Amount Tendered
Commencement Title of and Accepted for
CUSIP/ISIN Number of Tender Offers Securities Purchase by AMR
00176LBZ3/US00176LBZ31 $22,500,000 10.40% Medium $50,000
Term Notes,
Series B, due
March 10, 2011
00176LCG4/US00176LCG41 $6,600,000 10.45% Medium $466,000
Term Notes,
Series B, due
March 10, 2011
00176LCC3/US00176LCC37 $10,650,000 10.40% Medium $8,360,000
Term Notes,
Series B, due
March 15, 2011
00176LCK5/US00176LCK52 $5,000,000 10.42% Medium $3,064,000
Term Notes,
Series B, due
March 15, 2011
00176LCM1/US00176LCM19 $4,000,000 9.96% Medium $0
Term Notes,
Series C, due
May 2, 2011
00176LCS8/US00176LCS88 $1,000,000 9.88% Medium $1,000,000
Term Notes,
Series C, due
May 16, 2011
00176LCV1/US00176LCV18 $2,000,000 10.13% Medium $0
Term Notes,
Series C, due
June 15, 2011
00176LDD0/US00176LDD01 $2,550,000 9.82% Medium $5,000
Term Notes,
Series C, due
October 25, 2011
00176LDK4/US00176LDK44 $3,900,000 10.45% Medium $181,000
Term Notes,
Series C, due
November 15, 2011
00176LDN8/US00176LDN82 $8,575,000 9.20% Medium $874,000
Term Notes,
Series C, due
January 30, 2012
00176LEB3/US00176LEB36 $1,100,000 9.14% Medium $10,000
Term Notes,
Series D, due
February 21, 2012
00176LCU3/US00176LCU35 $1,000,000 10.15% Medium $87,000
Term Notes,
Series C, due
May 15, 2020
00176LCF6/US00176LCF67 $2,450,000 10.29% Medium $85,000
Term Notes,
Series B, due
March 8, 2021
00176LCJ8/US00176LCJ89 $4,100,000 10.55% Medium $375,000
Term Notes,
Series B, due
March 12, 2021
00176LCT6/US00176LCT61 $675,000 10.125% Medium $84,000
Term Notes,
Series C, due
June 1, 2021
001765AU0/US001765AU07 $88,407,000 9% Debentures $12,648,000
due August 1, 2012
001765AC0/US001765AC09 $78,215,000 9% Debentures $17,271,844
due September 15,
2016
001765AE6/US001765AE64 $22,835,000 10.20% Debentures $5,309,500
due 2020
001765AG1/US001765AG13 $9,705,000 9.88% Debentures $1,816,000
due 2020
001765AK2/US001765AK25 $34,302,000 10% Debentures $2,140,000
due April 15, 2021
001765AP1/US001765AP12 $16,818,000 9-3/4% Debentures $1,118,000
due August 15, 2021
001765AQ9/US001765AQ94 $11,970,000 9.8% Debentures $6,905,000
due October 1, 2021
The payment of the tender offer consideration for such Securities, plus
any accrued and unpaid interest thereon, will be made on Tuesday, Nov. 28. A
total of $276,502,656 principal amount of Securities will remain outstanding
following settlement.
Morgan Stanley served as the Dealer Manager and Global Bondholder Services
Corporation served as Depositary and Information Agent for the tender offers.
For further information, investors and brokers should call:
Global Bondholder Services Corporation Morgan Stanley
866-795-2200 (toll-free) Or 800-624-1808 (toll-free)
212-761-5746 (call collect)
Statements in this announcement contain various forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended, which
represent AMR's expectations or beliefs concerning future events. When used
in this announcement, the words "expects," "plans," "anticipates,"
"indicates," "believes," "forecast," "guidance," "outlook," "may," "will,"
"should," and similar expressions are intended to identify forward-looking
statements. Similarly, statements that describe AMR's objectives, plans or
goals are forward-looking statements. Forward-looking statements include,
without limitation, AMR's expectations concerning operations and financial
conditions, including changes in capacity, revenues and costs; future
financing plans and needs; overall economic and industry conditions; plans and
objectives for future operations; and the impact on AMR of its results of
operations in recent years and the sufficiency of its financial resources to
absorb that impact. Other forward-looking statements include statements which
do not relate solely to historical facts, such as, without limitation,
statements which discuss the possible future effects of current known trends
or uncertainties or which indicate that the future effects of known trends or
uncertainties cannot be predicted, guaranteed or assured. All forward-looking
statements in this announcement are based upon information available to AMR on
the date of this announcement. AMR undertakes no obligation to publicly update
or revise any forward-looking statement, whether as a result of new
information, future events, or otherwise.
Forward-looking statements are subject to a number of factors that could
cause AMR's actual results to differ materially from AMR's expectations. The
following factors, in addition to other possible factors not listed, could
cause AMR's actual results to differ materially from those expressed in
forward-looking statements: the materially weakened financial condition of
AMR, resulting from its significant losses in recent years; the ability of AMR
to generate additional revenues and significantly reduce its costs; changes in
economic and other conditions beyond AMR's control, and the volatile results
of AMR's operations; AMR's substantial indebtedness and other obligations; the
ability of AMR to satisfy existing financial or other covenants in certain of
its credit agreements; continued high fuel prices and further increases in the
price of fuel, and the availability of fuel; the fiercely competitive business
environment faced by AMR, and historically low fare levels; competition with
reorganized and reorganizing carriers; AMR's reduced pricing power; AMR's
likely need to raise additional funds and its ability to do so on acceptable
terms; changes in AMR's business strategy; government regulation of AMR's
business; conflicts overseas or terrorist attacks; uncertainties with respect
to AMR's international operations; outbreaks of a disease (such as SARS or
avian flu) that affects travel behavior; uncertainties with respect to AMR's
relationships with unionized and other employee work groups; increased
insurance costs and potential reductions of available insurance coverage;
AMR's ability to retain key management personnel; potential failures or
disruptions of AMR's computer, communications or other technology systems;
changes in the price of AMR's common stock; and the ability of AMR to reach
acceptable agreements with third parties. Additional information concerning
these and other factors is contained in AMR's Securities and Exchange
Commission filings, including but not limited to AMR's Annual Report on Form
10-K for the year ended December 31, 2005.
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