Northwest Airlines Secures $500 Million of New Financing
Northwest Airlines (NYSE: NWA) announced today that is has closed on a new $500 million financing facility. The financing is structured as a $500 million secured revolving credit facility and was led by U.S. Bank with Citigroup and Morgan Stanley as co-lead arrangers and joint book runners.
In an 8-K Report filed with the SEC, the Company said that the financing will consist of a three-year $200 million secured revolving credit facility with a final maturity on October 28, 2011 with loans thereunder bearing interest at LIBOR plus 4.5%, and a 364-day $300 million secured revolving credit facility with a final maturity on October 28, 2009 with loans thereunder bearing interest at LIBOR plus 3.5%.
Northwest’s executive vice president and chief financial officer, Dave Davis, said, “We are very pleased to announce that this financing has been completed, especially in this challenging credit environment and we are grateful for the financial support provided from U.S. Bank, Citicorp and Morgan Stanley in helping to structure and lead this transaction.” The new facility is intended to be used for working capital needs and general corporate purposes.
Northwest Airlines is one of the world’s largest airlines with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam. Northwest, with its regional partners, operates approximately 2,400 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world’s most extensive global networks. Northwest and its travel partners serve more than 1,000 cities in excess of 160 countries on six continents.