Atsb Clears Us Airways-america West Merger

[USA320Pilot]

Federal Panel Clears Airlines Merger

"The ATSB has negotiated new loan terms that materially improve the collateral position of the board, reducing the risk to the taxpayers under the existing loan guarantees," the board said in a statement.

See Story

Regards,

USA320Pilot

 

[Flying Titan]

This is the quote I find most interesting...

"The ATSB has negotiated new loan terms that materially improve the collateral position of the board, reducing the risk to the taxpayers under the existing loan guarantees," the board said in a statement. The board would have the right to buy an 11 percent stake in the new company, said Dayton.

Anyone have any details on what the new terms are? What's the new collateral? What are the new cash requirements? What price would the ATSB pay for its shares in the new US Airways?

 

[markkus757]

What I would like to konw is who loses part of their stake so the ATSB can get theirs?

 

[robbedagain]

how come the ATSB wouldnt combine the new loan so that it could havebeen easier to repay using one check especially since America West will no longer have their name?

 

[ClueByFour]

What I would like to konw is who loses part of their stake so the ATSB can get theirs?

[post="283338"][/post]​

Presumably,

1. Existing US equity holders.

2. Existing HP equity holders.

 

[BoeingBoy]

Clue,

I assume you meant "US unsecured debt holders" in #1 above - the US equity holders will be getting zilch so have nothing to lose part of.

Presumably, the ATSB will get additional warrants - they were already getting new warrants allowing them to purchase "new US" stock in exchange for the AWA warrents they received when they backed the AWA loan. If this is the case, no one necessarily loses anything on an undiluted basis, but only if the warrents are actually converted to equity.

Jim

 

[BoeingBoy]

The ATSB has posted the term sheet for the loans they've backed on their web site.

ATSB-Backed Loans Term Sheet

Jim

 

[Rob]

how come the ATSB wouldnt combine the new loan so that it could havebeen easier to repay using one check especially since America West will no longer have their name?

[post="283345"][/post]​

Because the ATSB doesn't lend money, just guarantees loans made by others. America West and US Airways owe the money to different banks.