Northwest secures $500 million in financing

Washington DC
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Northwest Airlines today said it closed on a new $500 million financing package the same day it won approval from the US Justice Department to merge with Delta Air Lines.

Details of the financing include a three-year $200 million revolving credit facility with a 28 October 2011 maturity date. The second element is a roughly one-year $300 million credit facility.

The carrier says the financing was led by US Bank with Citigroup and Morgan Stanley as co-lead arrangers.

Northwest and Delta also today won DOJ approval to move forward with their merger. Previously the two sides have said they expect the transaction to close by yearend.

Once the deal is finalized the combined airline will fly under the Delta brand.