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Southwest gets $1 billion revolving credit line

NEW YORK (AP) -- Southwest Airlines Co. said Thursday that it obtained a $1 billion, 5-year revolving credit arrangement this week.

The credit facility will replace an $800 million, 5-year agreement that would have expired in April 2016.

The new financing was extended by a syndicate of lenders that included Citibank and JPMorgan Chase Bank as co-administrative agents, the airline said in a regulatory filing.

Southwest said that rates will be based on either the London interbank offered rate, known as Libor; or the highest of the prime rate, the 1-month Libor plus 1 percent, or the federal funds effective rate plus 0.5 percent. A margin based on the Dallas company's credit ratings will be applied to any of the latter three options. The rate terms appeared to be identical to the 2011 credit facility.

Other banks involved in the new agreement include affiliates of Morgan Stanley, Bank of America, Barclays, Deutsche Bank, Goldman Sachs and Wells Fargo.

Southwest shares rose 26 cents, or 2.1 percent, to close at $12.80.