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Northwest Completes a $148 Million Financing

Northwest Airlines
announced today that it has successfully completed a financing of $147.8
million, the proceeds of which were used to pay the November 2005
principal amortization in the same amount under the airline’s $975 million
credit agreement. Terms of the refinancing include an interest rate of LIBOR + 6.25% and
repayment over five years with a 96% balloon payment due in November 2010.
This new term loan financing transaction was led by JP Morgan and
Citigroup and included participation from existing and new lenders in the
credit agreement.

In connection with the closing of this financing, Northwest received
consent from its lenders to waive its fixed charge coverage covenant until
the second quarter of 2006. Northwest Executive Vice President and Chief
Financial Officer, Bernie Han, said, “We are pleased to be able to
complete this transaction in a challenging industry environment, and would
like to thank our lead banks and institutional lenders for their support.”