Small Deal, Big Step for Northwest

Several months after emerging from bankruptcy and several years after its last ABS deal, Northwest Airlines got into the securitization game again - albeit indirectly.

The airline sold passenger ticket and cargo receivables to Finacity Corp., a specialty finance and capital markets services company, which then issued notes backed by the receivables and sold them to a single investor. The $150 million private placement garnered pricing at CP plus 100 basis points, and it represents the first time that Northwest has done a securitization in such a way, said Adrian Katz, CEO of Finacity.