ST. PAUL, MINN. - (June 3, 2003) - Northwest Airlines Corporation (NASDAQ: NWAC) made an announcement today with respect to its Series C Preferred Stock (outstanding amount: $226 million).
The Company issued the Series C Preferred Stock in 1993 to trusts for the benefit of its employees in connection with labor cost restructuring agreements between Northwest and its major unions. The terms of the Series C Preferred Stock establish the process that the Company is required to go through to determine how and when the Series C Preferred Stock will be repurchased. The process requires the Company to choose the form of payment it intends to use to repurchase the Series C Preferred Stock. The Company is also required to make a separate decision as to whether the Company will repurchase the Series C Preferred Stock.
The purpose of this announcement is to notify the holders that the Company has chosen the form of payment it would intend to use. It has elected to use cash, rather than shares of its common stock. The decision announced today does not mean that the Series C Preferred Stock will be repurchased by the Company later this year. Consummation of the repurchase is subject to, among other things, compliance with corporate law requirements applicable to the Company. A decision regarding repurchase of the Series C Preferred Stock will be made by the Company’s Board of Directors on August 1, 2003.
Northwest Airlines, Inc. is the world’s fourth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and approximately 1,500 daily departures. With its travel partners, Northwest serves nearly 750 cities in almost 120 countries on six continents.
Statements in this news release that are not purely historical facts, including statements regarding our beliefs, expectations, intentions or strategies for the future, may be “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the plans, intentions and expectations reflected in or suggested by the forward-looking statements. Such risks and uncertainties include, among others, the future level of air travel demand, the Company’s future load factors and yields, the cost and availability of aviation insurance coverage and war risk coverage, the general economic condition of the United States, the expansion of low-fare carriers, the impact of cost reductions achieved by carriers in or near bankruptcy, the price and availability of jet fuel, the war with Iraq and its aftermath, concerns about Severe Acute Respiratory Syndrome, and the possibility of additional terrorist attacks or the fear of such attacks. Additional information with respect to the factors and events that could cause differences between forward-looking statements and future actual results is contained in the Company’s Securities and Exchange Commission filings, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2002. We undertake no obligation to update any forward-looking statements to reflect events or circumstances that may arise after the date of this release.
For more information pertaining to Northwest, media inquiries can be directed to Northwest Media Relations at (612) 726-2331.