(Reuters) – American Airlines Group Inc AAL.O said on Sunday he planned to secure $ 3.5 billion in new funding, to improve the airline’s liquidity as it grapples with travel restrictions caused by the coronavirus.

The company plans to raise $ 1.5 billion by selling shares and senior convertible bonds due 2025, the airline said in a statement.

In addition, the airline said it will offer $ 1.5 billion in senior secured notes and intends to enter into a new $ 500 million term loan facility maturing in 2024.

The company plans to use the net proceeds from the share and convertible note offerings for general corporate purposes and improve its liquidity position, the airline added.

The share and convertible note offerings, first reported by Bloomberg News, include a 30-day option allowing the underwriters to purchase up to $ 112.5 million in additional common shares and up to $ 112.5 million in additional convertible notes respectively, the company said.

Goldman Sachs & Co. LLC, Citigroup, BofA Securities and JP Morgan will act as representatives of the Underwriters.

American Airlines and Delta Air Lines Inc DAL.N said last week that a modest recovery in demand was helping slow rates of daily cash consumption in June after the U.S. government reported a record number of passengers in April amid the coronavirus pandemic.

Reporting by Sabahatjahan Contractor and Radhika Anilkumar in Bangalore; edited by Diane Craft and Lincoln Feast.

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