Southwest Airlines Co. (NYSE: LUV) has disclosed in an SEC Fling that On May 6, 2008 the company entered into a term loan agreement with Citibank and seven European banks named as lenders to Southwest aggregating up to $600 million.
The consortium of banks have loaned the full $600.0 million to the air carrier on May 9. These loans are all to be secured by first-lien mortgages of a total of 21 Boeing 737-700 aircraft that are owned by Southwest.
The loans mature on May 9, 2020 and are repayable quarterly in installments of principal and interest at a rate of LIBOR plus 0.95%.
After looking through the company’s latest books as of March 31, 2008, the company had listed liquidity as $4.370 Billion in cash and equivalents, $350 million in receivables, and $180 million in long-term investments. Its current debt was broken down as 5.781 Billion in current liabilities, $2.079 Billion long-term debt, and $2.986 Billion in deferred long-term liability charges; and the total liabilities are $10.846 Billion.
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Jon C. Ogg
May 12, 2008