Republic loans US 35 mil

[T-Bird76]

Sounds like US's cash reserves are running to a point where they may fall short of certain credit requirements and Republic is injecting some extra cash.

U.S. regional carrier group Republic Airways continues to extend its reach beyond simply operating capacity contracts with a deal that could see the company lend US Airways up to $35 million.

The deal comes just one week after Republic unveiled an agreement with Hawaii’s Mokulele that included up to $8 million in direct financing for the island carrier and an option for Republic to purchase up to 45% of its new partner.

Under its new loan agreement, Republic issued $10 million to US Airways on Oct. 20. Options allow US Airways to call on a second $25 million tranche in the first quarter of 2009.

Interest will be paid quarterly with principal amounts to be repaid between October 2009 and October 2011.

“US Airways and Republic have enjoyed a successful partnership for nearly 35 years,” says Republic President and CEO Bryan Bedford. “Our investment in US Airways today simply reaffirms our commitment to US Airways and its ability to continue managing through uncertain economic times for our industry.”

US Airways Express President Dion Flannery adds, “We are extremely appreciative of the commitment Republic is making today, and greatly value their support over our long-standing partnership. We will work diligently with them so that our customers continue to benefit from our partnership and we look forward to future success with this integral partner in the US Airways network.”

This loan agreement was announced the same day US Airways revealed it had raised about $950 million in financing and liquidity commitments from an initiative launched in August.

“US Airways’ financial footing is solid,” says the carrier’s Chairman and CEO Doug Parker. “As a result of these financings our total cash position relative to annual revenues ranks solidly among the highest of the largest U.S. carriers. Most notably, we were able to complete this financing in the midst of unprecedented global financial unrest, which is a testament to the confidence our investors and business partners have in the people of US Airways.”

CFO Derek Kerr adds, “Combined with our August equity, offering which generated $179 million, and other financings completed during the quarter, US Airways has raised or secured approximately $1.2 billion in cash and payment deferrals since we released our second quarter financial results.”

[LGA777]

Sadly for some of us on this site who are either US employees or US supporters/fans no matter what US does it will be downplayed or analized in a way to make it negative.

So I am sticking my neck out and saying something positve and I will wait for the abuse.

Unless you have been under a rock for the last two months we all know what's going in the Financial and Lending Industry and there is simply no money to lend or invest in other companies/industries. Airlines right are now are particully risky investments. For US management to arrange $950 million in new financing in the last two weeks and a total of $1.2 BILLION total in the last two months is I'm sorry bashers VERY IMPRESSIVE.

Okay you can resume bashing now.

LGA777