Manufacturing Industry
US Airways sells debt totalling USD777m
Airline Industry Information, Oct 20, 2005
AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD
US Airways Group Inc (NYSE: LCC) has sold debt totalling USD777m, of which USD752m was backed by the government, at a slight premium to par to 13 fixed-income investors.
The company said that these loans were granted to the former America West Airlines and US Airways in the aftermath of 11 September 2001 and the total current outstanding balance of these loans is USD832m, with USD55m held by two other existing investors.Terms associated with those loans remain unchanged, with the former America West loan terminating in 2008 and the former US Airways loan terminating in 2010.
The Air Transportation Stabilization Board (ATSB) loan programme, which was open to all airlines in the aftermath of 11 September 2001, was created as part of the Air Transportation Safety and System Stabilization Act. This Act was reportedly put into place to stabilise the industry at a time when the private capital markets were closed.
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