US Airways launches $1.6billion refinancing

Victoria
By Victoria May 10, 2013 13:02

US Airways launches $1.6billion refinancing

US Airways has launched a $1.6billion senior secured refinancing, which consists of a $1 billion, six-year B-1 term loan and a $600 million, 3.5-year B-2 term loan.

Citigroup, Barclays, Morgan Stanley, and Goldman Sachs are the banks arranging the deal.
Price talk on the six-year loan has been set at LIBOR +350-375bps, with a 1% LIBOR floor, offered at 99, while the junior tranche is priced around L+275-300, with a 1% LIBOR floor, offered at 99.5, according to S&Ps Leveraged Commentary & Data. At these prices, the six-year tranche would yield 4.78-5.04% to maturity, while the 3.5-year loan would yield about 3.97-4.22%, says LCD.

The airline intends to refinance its outstanding $1.1 billion under its existing B term loan due 2014 (L+250) ahead of its planned merger with American Airlines, while also financing spare parts and spare engines loans maturing in 2014, refinance a loan related to the airline’s purchase of landing slots at Reagan National Airport, and put $248 million of cash on the balance sheet.

Victoria
By Victoria May 10, 2013 13:02
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