American Airlines is raising another $3.5 billion, validating Warren Buffett's decision to dump the 'big four' carriers

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• American Airlines plans to raise $3.5 billion in new financing, validating Warren Buffett's sale of his stakes in the "big four" US airlines in April.
• American said on Monday that it intends to sell $1.5 billion of debt, issue $750 million in stock and $750 million in convertible debt, and enter into a $500 million loan facility.
• Delta, Southwest, and United have also taken government loans and raised billions in recent weeks, supporting Buffett's fears that the airlines would have huge debts to repay and existing shareholders would be diluted.
• Buffett has been criticized for exiting the "big four" airline stocks, but they're still down between 37% and 59% this year.
• Visit Business Insider's homepage for more stories.

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American Airlines is planning to raise $3.5 billion to weather the coronavirus pandemic, supporting Warren Buffett's decision to sell his shares in the carrier as well as in Delta Air Lines, Southwest Airlines, and United Airlines in April.

American intends to sell $1.5 billion of debt in a private offering, issue $750 million in common stock and $750 million in convertible debt in a public offering, and enter into a $500 million loan facility, the company said in a pair of press releases on Sunday.

See the rest of the story at Business Insider

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