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May 07, 2013

US Airways looking to refinance $1.6 billion in debt, Bloomberg says

US Airways is looking to refinance $1.6 billion of its debt as it prepares to merge with American Airlines, according to a Bloomberg News report.

The article, which cites a source with knowledge of the deal, says Citigroup, Barclays, Morgan Stanley and Goldman Sachs are arranging the debt deal.

"The $1 billion loan will pay interest at 3.5 percentage points to 3.75 percentage points more than the London interbank offered rate, with a 1 percent minimum on the lending benchmark, the person said. US Airways may sell the debt to investors at 99 cents on the dollar.

"The $600 million piece will pay interest at 2.75 percentage points to 3 percentage points more than Libor, with a 1 percent floor, and may be sold at a discount of 99.5 cents on the dollar," the article says.

Click here to read the report.

-Andrea Ahles

 

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