Pinnacle amends $25m CIT Bank loan

London
Source: Flightglobal.com
This story is sourced from Flightglobal.com

Pinnacle Airlines Corp. has amended its $25 million loan agreement with CIT Bank signed in July 2009.

The company and its three operating subsidiaries, Pinnacle Airlines, Colgan and Mesaba Aviation entered into a third amendment to credit agreement with CIT Bank and C.I.T. Leasing Corporation, as administrative agent and collateral agent. Under the new term loan, CIT Bank will provide $37 million in financings secured by Pinnacle, Colgan and Mesaba spare repairable, rotable and expendable parts and certain aircraft engines.

A portion of the term loan is subject to a fixed interest rate of 7.25% while the remainder is subject to a variable interest rate, which for the first interest period is indexed to LIBOR and was 6.25% on 24th June (the effective date).

The term loan also has standard provisions relating to the borrowers' obligations to timely repay the indebtedness and maintenance of the collateral base relative to the outstanding principal amount of the borrowing.

The maturity date was also extended 18 months to 31 December 2015.