| Deal Description | American Airlines expected to use the net proceeds of the securities offered for the payment in full of the company's outstanding 2 1/2 % installment promissory note, dated August 27, 1940. Other funds were to be added to the general corporate funds of the company and expected to be used to a substantial extent to meet payments for airplanes to be delivered in the future. At the time, the company had ordered, subject to final agreement upon terms, twelve Douglas DC-3 airplanes for delivery in 1941 and 1942. There were no definite plans as to the source of the remainder of the purchase price of such airplanes, which could be provided by bank loans, sale of capital stock, out of earnings, or other sources. |
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