Magazine article American Banker

Northwest Orient Parent to Use Bank Credit to Fund Acquisition

Magazine article American Banker

Northwest Orient Parent to Use Bank Credit to Fund Acquisition

Article excerpt

CHICAGO -- NWA Inc. will use a bank revolving credit to finance its planned acquisition of Republic Airlines Inc., although the company is still several weeks away from making any decisions ont he size of the bank credit, the terms of the agreement, or which institutions will participate in the financing, according to John Edwardson, vice president of finance.

"The benefits of operating the two airliens together are very substantial, and we don't want to use any long-term debt to finance the acquisition," he said.

NWA, which is the parent company for Norhtwest Orient Airlines, said late Thursday afternoon that it would acquire Republic Airlines for $884 million in cash. Since that announcement, Mr. Edwardson said, he has received a minimum of 50 to 60 telephone calls from commercial banks and a host of investment banks "with verbal indications of interest in helping to finance the acquisition."

"It's been very interesting," Mr. Edwardson said. "We made the announcement at 3:15 on Thursday afternoon, and the calls started 15 minutes later. They were nonstop on Friday and i must have had six calls [on Monday morning] alone," he added.

The banks that have called Mr. Edwardson thus far are familiar names, he said. "These people have been calling on us for years, looking for business.c And it also includes the 14 banks that are in a $500 million revolving credit with the airlines subsidiary (Norwest Corp. is the agent on that deal). Although Northwest Orient Airlines is currently not borrowing any money under that existing facility, Mr. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.