Monday, Aug. 4, 2003 | 9:41 a.m.
FORT WORTH, Texas -- Shares of American Airlines' parent fell today after the company said it would raise $250 million by issuing new debt.
AMR Corp., which barely avoided bankruptcy several times this spring, said it would issue debt that can be converted into stock -- a move that would dilute the value of current shares in the world's largest airline.
AMR said it would use money raised from the offering for working capital and general purposes. The convertible notes, due in 2023, will be offered to qualified institutional buyers in a private placement, AMR said.
In late-morning trading, AMR shares were down 64 cents, or 7.2 percent, at $8.31 after trading as low as $8.01 on the New York Stock Exchange.
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