Northwest Airlines announced that it had successfully exchanged $59.06 million of its outstanding debt due through 2006 for newly issued Class D EETC notes due April 2009. Northwest expects to have closed $64.4 million of series 2003-1 EETC as of last Friday. Under terms of the exchange, the single-B rated EETCs will pay a 10.5% coupon. Led by Morgan Stanley, Northwest initially hoped to exchange up to $551.8 million of its unsecured obligations.
As expected, the majority of the interest was for the 8.875% notes due March 2006, with $29.9 million of tenders coming from this investor bucket. An additional $12.3 million of tenders came from holders of 8.375% notes due March 2004, $5.1 million from holders of 8.52% notes due April 2004 and $11.7 million from 7.625% notes due March 2005.