American Airlines Parent To Sell $300M In Stock

August 25, 2008 12:28 p.m. EST

Fort Worth, TX (AHN) - The parent company of American Airlines, Inc., AMR Corp., will sell $300 million in shares of common stock at a par value of $1 per share.

In a filing with Securities and Exchange Commission on Friday, AMR said that it entered into an agreement on the newly issued shares with Merrill Lynch as agent on the transaction.

AMR, which has been affected by soaring fuel prices, said it will use the proceeds to repay debt or in acquiring new airplanes.

The company is estimated to worth $2.6 billion based on its stock price, which slumped to almost 60 percent for the last 12 months.

AMR share price dropped 3 percent, to $10.20, in Monday morning's trade.