http://www.ajc.com/business/content/business/delta/stories/2008/08/25/delta= _borrowing_billion.html Delta tapping $1B credit line to deal with merger By KELLY YAMANOUCHI The Atlanta Journal-Constitution Monday, August 25, 2008 Delta Air Lines is borrowing $1 billion with an existing credit line to inc= rease its cash balance as it nears the close of its acquisition of Northwes= t Airlines. Atlanta-based Delta expects to close its deal with Eagan, Minn.-based North= west by the end of the year. Delta president and chief financial officer Ed Bastian said in a memo to em= ployees that drawing down the full amount of the company=E2=80=99s $1 billi= on credit line =E2=80=9Cwill provide us with the utmost in flexibility=E2= =80=9D as it prepares to close the merger. He said he believes the company = has more than sufficient cash to manage the integration of the two airlines= and run the business. Delta has estimated the integration will cost $600 m= illion over three years. =E2=80=9CIt=E2=80=99s not being done out of any financial duress or any ope= rating needs for cash,=E2=80=9D Bastian said in an interview Monday. =E2=80= =9CIt is more of an offensive move to align our bank agreements with that o= f Northwest=E2=80=9D as the companies enter discussions with bankers, he sa= id, adding that he could not elaborate further. Delta said it had $3.7 billion in liquidity at the end of July, including t= he $1 billion credit line, down from $4.3 billion at the end of June. Delta took out a $1.5 billion loan when it exited from bankruptcy last year= , along with the $1 billion credit line that it has pointed to as evidence = of its liquidity. Delta also said Monday it has amended its Visa/MasterCard credit processing= agreement with U.S. Bank to run through 2011 with no cash holdback require= d. The agreement also covers Northwest after the close of the merger. =0A=0A=0A <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> If you wish to unsubscribe from the AIRLINE List, please send an E-mail to: "listserv@xxxxxxxxxxxxxxxxx". Within the body of the text, only write the following:"SIGNOFF AIRLINE".