Delta Air Lines Inc. has amended the terms of a revolving credit facility and term loan agreement so that the company can pledge aircraft as collateral while limiting dividend payments or share repurchases before September 30, 2021. Statements in this press release that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections or strategies for the future, may be «forward-looking statements» within the meaning of 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 estimates, expectations, beliefs, intentions, projections and strategies expressed or implied by the forward-looking statements. The Company`s $2.65 billion unsecured revolving credit facility as at April 19, 2018 is now secured by an initial lien on the Company`s Pacific Highway authorities and certain related assets. Delta also has the option of pledging its aircraft as an additional warranty. ATLANTA, September 17, 2020 – Delta Air Lines (NYSE: DAL) today announced the increase and price of the previously announced private offer of Delta and its indirect wholly-owned subsidiary SkyMiles IP Ltd. A total principal amount of $2.5 billion in senior secured debentures maturing in 2025 totalling $2.5 billion and a total of $3.5 billion in senior secured debentures maturing in 2028 (collectively, the «Debentures») are expected to mature on May 23, 2028. September 2020, subject to customary closing conditions. The Bonds will be issued to investors at a price of 100% of their capital.
In conjunction with the issuance of the Notes, Delta and SkyMiles IP Ltd. expect to enter into a credit agreement providing for a $3.0 billion long-term credit facility («New Credit Facility»), which is also subject to customary closing conditions. Overall, the Notes and the new Credit Facility will generate gross proceeds of $9.0 billion, an increase of $2.5 billion over the initial transaction volume of $6.5 billion at an average annual blending rate of 4.75%. Delta Air Lines today announced the closing of a $2.6 billion secured credit facility that increases the company`s liquidity as it faces an unprecedented drop in flight demand due to the COVID-19 outbreak. The company also derives $3 billion from its existing revolving credit facilities. The aviation industry has been particularly hard hit by the COVID-19 pandemic which has led countries around the world to impose travel restrictions, forcing airlines to downsize and strengthen their balance sheets. .
