US Airways $1.1 billion term loan expected to launch March 27 week

By Sara Rosenberg

New York, March 15 - US Airways Group Inc. is anticipating holding a bank meeting during the week of March 27 to launch its proposed $1.1 billion five-year non-amortizing senior secured term loan, according to a market source.

GE Capital Markets and Morgan Stanley Senior Funding are joint lead arrangers on the deal, with GE acting as bookrunner.

Pricing on the term loan will be based on ratings. If the deal is rated B1/B+ or better, pricing will be Libor plus 350 basis points, and if the deal is rated B2/B or lower, pricing will be Libor plus 375 bps, the source said.

Security is a fully perfected first-priority interest in substantially all of the existing and future real and personal, tangible and intangible assets securing the existing ATSB term loans and the existing GE Capital Spare Parts and Spare Engines term loan, including cash, accounts receivable, ground service equipment, spare engines, spare parts, flight simulators, real estate and airport gates and slots at LaGuardia airport in New York as well as Ronald Reagan airport in Washington, D.C.

Proceeds will be used to refinance the company's existing US Airways term loan, the existing AWA ATSB term loans, the existing GE Capital Spare Parts and Spare Engine term loans and the existing Airbus loan.

Closing on the deal is targeted for on or before April 6, with the expectation being that the deal should be fully circled within two weeks of the late-March launch, the source explained.

US Airways is a Tempe, Ariz., provider of airline services.

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