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.