Notice To Holders Of American Airlines Group Series A Convertible Preferred Stock Regarding First Mandatory Conversion Date
- 41,963,700 shares of Convertible Preferred Stock will be converted into shares of Common Stock (NASDAQ: AAL) as of the close of business on
January 8, 2014. By operation of the mandatory conversion mechanism contained in the Certificate of Designations, each holder will have approximately 26.6 percent of its shares of Convertible Preferred Stock mandatorily converted.
- The Conversion Price used for determining the number of shares of Common Stock issuable upon conversion of the Convertible Preferred Stock is
$25.3863. For each $1,000in Stated Value of Convertible Preferred Stock mandatorily converted, Holders will receive approximately 39.39 shares of Common Stock. Stated a different way, each share of Convertible Preferred Stock mandatorily converted will be converted into approximately 0.9899 shares of Common Stock, subject to rounding. The Depository Trust & Clearing Corporation(DTCC) will be processing the conversion on their systems on the morning of January 9, 2014. Investors should inquire of their broker regarding the treatment of their shares upon the mandatory conversion.
- The next Mandatory Conversion Date will occur on
February 7, 2014. An additional 41,963,700 shares of Convertible Preferred will convert to Common Stock on that Mandatory Conversion Date. The conversion ratio will be determined based on the volume weighted average price of AAL for the five trading days prior to February 7, 2014.
- The second Optional Conversion Period will commence on
January 14, 2014.
Additional Common Stock Distributions
- Pursuant to Section 4.5 of the Company's Fourth Amended Joint Plan of Reorganization (the "Plan"), holders of AMR common stock (formerly traded under the symbol: "AAMRQ") who received an initial distribution of shares of AAL in connection with the effective date of the Plan will receive, for each share of AMR common stock previously owned, a distribution of approximately 0.1319 shares of AAL on or about
January 9, 2014. AAMRQ holders may in the future receive additional distributions based on the trading price of AAL common stock during the 120 day period after the effective date and the total amount of allowed claims, in each case, in accordance with the terms of the Plan.
- Pursuant to Section 5.15 of the Plan, holders of convertible notes who elected to be treated as if they had converted their notes to AMR common stock prior to the effective date will also receive a distribution of shares of AAL. Individuals who held AMR's 6.25% Convertible Senior Notes due 2014 and elected to be treated as if they held AMR common stock will receive approximately 14.4563 shares of AAL for each
$1,000of principal amount thereof, and individuals who held AMR's 4.5% Convertible Senior Notes due 2024 and elected to be treated as if they held AMR common stock will receive 6.000 shares of AAL for each $1,000of principal amount thereof, in each case on or about January 9, 2014.
- Also pursuant to the Plan, approximately 1.1 million shares (on a net issued basis) are being distributed to employees as part of the Labor Common Stock Allocation (as defined in the Plan).
Additional Information and Where to Find It
For questions about distributions under the Plan, please visit www.amrcaseinfo.com.
For information about
Investor Relations, 817-931-3423, firstname.lastname@example.org