US Airways Group Inc. is working with GE Commercial Finance to refinance about one-third of its approximately $3 billion in debt.
The nation's fifth largest air carrier said Wednesday it had signed a commitment letter with the commercial financing unit of General Electric Co. for a transaction that could refinance about $1.1 billion in debt for a five-year term.
The deal is set to close on April 6, if terms and conditions are met. US Airways said the refinancing will allow it to reduce its immediate interest expenses significantly and extend debt maturities.
As part of the financing deal to bring US Airways out of bankruptcy protection and allow it to be combined with America West in September, an infusion of $1.7 billion in capital from several sources, including European jet-maker Airbus, was required. Less than half of that is being carried as debt.
Shares of US Airways rose 97 cents, or 2.8 percent, to $35.07 in afternoon trading on the New York Stock Exchange.
News stories provided by third parties are not edited by "Site Publication" staff. For suggestions and comments, please click the Contact link at the bottom of this page.
