Citigroup and Morgan Stanley have committed to arrange financing of up to $1.6 billion to allow US Airways to refinance $1.25 billion of existing senior secured facilities and $325 million of unsecured debt. Pricing on the new debt is LIBOR plus 2%. GE Commercial Finance is acting as the documentation agent.
Citigroup had previously committed $7.2 billion in financing for the airlines bid to merge with Delta Air Lines. US Air finally withdrew its offer after the bankrupt airline's creditors rejected the offer (CIN, 2/5). JPMorgan, Goldman Sachs, Merrill Lynch, Lehman Brothers, UBS and Barclays Capital have committed $2.5 billion in exit financing for Delta (2/5). A call to Derek Kerr, senior v.p. and cfo, was referred to a spokeswoman who did not return a call.