Capital raising by American a “liquidity grab” – Cowen

Moves by American Airlines to raise cash via a “trifecta” of equity, convertible bonds and debt raises is a “liquidity grab” by the carrier to tap markets while there is still appetite by investors for aviation, according to analysts Cowen. American will raise $4 billion in liquidity through a combination equity, convertible notes and debt raises which will bring the firm’s total liquidity to $15 billion by the end of Q2 2020.  With a cashburn rate of £40 million a day during June gives, the latest capital raising will give the firm roughly ten and half month’s cash on hand.