Southwest opens $1b credit line

Washington DC
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Southwest Airlines has entered into a $1 billion revolving credit agreement with a syndicate of lenders.

The five-year credit line carries an interest rate over Libor or an alternative base rate that is equal to 100bp over Libor or the US Federal Funds Effective Rate plus 50bp, according to a stock exchange filing.

Commitments include $90 million from Bank of America Merrill Lynch, $90 million Barclays Capital, $60 million BNP Paribas, $125 million Citi, $60 million Comerica Bank, $90 million Deutsche Bank, $90 million Goldman Sachs, $125 million JP Morgan, $120 million Morgan Stanley, $60 million US Bank and $90 million Wells Fargo.

The revolver replaces an existing credit facility that matures in April 2016.