Bloomberg News

US Airways Said to Seek $1.6 Billion of Term Loans to Refinance

May 07, 2013

US Airways Group Inc., the air carrier merging with AMR Corp.’s American Airlines, is seeking $1.6 billion of term loans to refinance debt, according to a person with knowledge of the transaction.

The debt consists of a $1 billion portion that matures in six years and a $600 million piece due in 3.5 years, said the person, who asked not to be identified because terms of the deal are private.

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 person said.

Citigroup Inc., Barclays Plc, Morgan Stanley and Goldman Sachs Group Inc. are arranging the debt for the company, the person said. Investors must let the banks know by May 16 if they will participate in the deal, according to the person.

To contact the reporter on this story: Christine Idzelis in New York at

To contact the editor responsible for this story: Faris Khan at

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