has restructured a $975 million credit facility, satisfying a key condition of concessions from pilots.
The Minnesota-based airline said Tuesday it has secured a new term loan payable over six years. It replaces a line of credit that was scheduled to mature next October. J.P. Morgan, Deutsche Bank and Citigroup arranged the loan, with help from U.S. Bank, ABN-Amro and Calyon.
"We are pleased that we have restructured our bank facility one year ahead of its maturity date," said Doug Steenland, chief executive of Northwest. "With the bank loan restructured, the final condition to our pilot agreement has now been satisfied and the $300 million in annual labor cost savings from pilots and management employees will go into effect on Dec. 1."
Earlier this month, pilots voted in favor of a package of wage concessions expected to save the Minnesota-based carrier $265 million a year. Northwest plans to cut another $35 million annually from salaries and benefits of nonpilot salaried and management employees.
Northwest shares were up 15 cents, or 1.6%, to $9.74.