| Company Deal | issue of $40,000,000 3% sinking fund debentures due June 1, 1966, and 400,000 shares 3 1/2% cumulative convertible preferred stock |
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| Transaction Type | sinking fund debentures, cumulative convertible preferred stock |
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| Deal Description | American Airlines expected to use the net proceeds received from the sale of the debentures and preferred stock offered initially as part of the company's general funds and as such to be applied to any corporate purposes. Such corporate purposes included payment of short-term bank loans that were obtained in February 1946 from 54 commercial banks in anticipation of the financing and expenditures required for the purchases made for flight equipment. Other corporate purposes will also include further capital expenditures for hangars, terminal facilities, additional ground equipment, spare parts and engines, further investments in American Overseas Airlines, Inc., and for other capital items. |
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