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US Airways finished with ATSB

BeCareful!

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Oct 21, 2004
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The new US Airways
has repaid the ATSB loans 5 years
early. See story.

CHICAGO, Oct 19 (Reuters) - US Airways Group (LCC.N: Quote, Profile, Research) on Wednesday said debt totaling $777 million, of which $752 million was backed by the government, has been sold at a slight premium to par to 13 fixed-income investors.

These loans had been granted to the former America West Airlines and US Air following the Sept. 11, 2001, terror attacks on the United States. The current outstanding balance of the loans is $832 million, with $55 million held by two other investors.

US Air and America West merged their operations this year to form a single airline.

Terms associated with the loans are unchanged, with the former America West loan terminating in 2008 and the former US Airways loan terminating in 2010.

"Today's announcement signifies the payoff of both the former America West and US Airways government-backed loans," said US Air Chief Executive Doug Parker in a statement
 

Swaayze

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This is a definite positive for LCC. It should remove any restrictions, covenants and controls that the ATSB held over the company. Perhaps something good will come from paying the "slight premium".
 
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