Sometimes the neurons fire and sometimes they don't, funguy. I've gone back and looked at some of the old filings, so let me make a couple more corrections.
The original payment schedule was for 6 equal biannual payments of $125 million each starting 10/01/06 ($112.5M to Tranche A & $12.5M to Tranche B). There was a final payment due 10/01/09 of $250 million ($225M Tranche A & $25M Tranche B). I was wrong when I said that the payment schedule was pushed back in the post above.
The sale of Hotwire (Inc, not .com - another misfire) resulted in a $30 million gain (not $25M - don't worry, I can't hide my own Easter eggs quite yet). Maybe you and sfb will give me partial credit - of the $30M from the sale, $24M went to the ATSB lenders as prepayment of the loan principal according to the annual report.
Roughly coincident with the annual report, US announced loan restructuring #1 (the following is from the annual report for 2003):
"Effective March 12, 2004, US Airways entered into an amendment to the ATSB Loan which provides for a partial prepayment of the loan and modifications of financial covenants (covenant relief) for the measurement periods beginning June 30, 2004 through December 31, 2005. Existing ratios used in financial covenants have been adjusted and reset to accommodate the Company’s forecast for 2004 and 2005. In exchange for this covenant relief, US Airways will make an immediate voluntary prepayment of $250 million, which will reduce, pro rata, all future scheduled principal payments of the ATSB Loan (rather than shortening the remaining life of the loan)."
"The amendment also provides for US Airways to retain, at its election, up to 25% of the net cash proceeds from any asset sale up to a total of $125 million to the extent that, among other things, definitive documentation for such asset sales is completed by February 28, 2005." (Hence the retention of some of the Hotwire proceeds)
As I believe you hinted, there were also changes to the financial ratio requirements going forward, but sfb is also right -
"Finally, in consideration for the ATSB lenders amending the provision related to the going concern paragraph in the independent auditor’s report for the Company’s audited financial statements for the year December 31, 2003, US Airways agreed to change the month end minimum unrestricted cash covenant to exceed the lesser of the outstanding ATSB Loan balance or $700 million and to commit that no intra-month end of day unrestricted cash balance would fall below the lesser of the outstanding ATSB Loan balance or $575 million."
So, as of 3/31/04 US had prepaid $274M of the $1B principal and all scheduled payments had been reduced respectfully - my calculator says that's 6 semiannual payments of $90.75M with a final payment of $181.5M, beginning on 10/1/06 and ending on 10/1/09.
Loan restructuring #2:
"Effective May 21, 2004, US Airways amended the ATSB Loan .....In consideration for this amendment, US Airways agreed to a revised covenant providing that month end minimum unrestricted cash will equal or exceed the lesser of the outstanding ATSB Loan balance and $725 million and that no intra-month end of day unrestricted cash balance will fall below the lesser of the outstanding ATSB Loan balance and $625 million. In addition, US Airways agreed to give up the right to retain up to 25% of the net cash proceeds from any asset sale, as had been permitted by the March 12, 2004 amendment. US Airways made a prepayment of $5 million in connection with this amendment."
"In consideration for this amendment, the Company agreed to change the loan amortization schedule, by increasing each of the first six principal repayment installments commencing on October 1, 2006 by approximately $16 million, and reducing the last principal repayment installment on October 1, 2009 by $94 million."
Other than minimum cash balances, that brings it up to date, at least as far as what's been made public. As you can see from the last change, I had it backward - the first 6 payments increased instead of decreased and the final payment decreased instead of increased. Let's just say I didn't run off the road into senility, but got a couple of wheels off onto the shoulder....
In closing, it looks like the first 6 payments are $107M each, with the final payment about $88M.
Jim
