Delta borrowing US$1.5b to pay for LATAM Airlines stake
Delta Air Lines is selling US$1.5b worth of bonds to help pay for its 20% stake in LATAM Airlines, according to a prospectus filed with the SEC Wednesday. The airline announced its intent 4 weeks ago to form a joint venture with LATAM to quickly increase its business in Latin America by connecting with LATAM's extensive airport network, and helping LATAM reach more customers in North America, Europe and Asia. The move also is expected to significantly enhance the cargo operations and offerings for both Delta and LATAM, experts have said. The proceeds of the sale will go towards the investment and to help LATAM with transition costs. Five-year notes that mature in 2024 will offer 2.9% interest and raise US$900m. Another $600m is being raised with 3.75% notes that mature in 10 years. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-10-24/sky/delta-borrowing-us-1-5b-to-pay-for-latam-airlines-stake
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Delta borrowing US$1.5b to pay for LATAM Airlines stake
Delta Air Lines is selling US$1.5b worth of bonds to help pay for its 20% stake in LATAM Airlines, according to a prospectus filed with the SEC Wednesday. The airline announced its intent 4 weeks ago to form a joint venture with LATAM to quickly increase its business in Latin America by connecting with LATAM's extensive airport network, and helping LATAM reach more customers in North America, Europe and Asia. The move also is expected to significantly enhance the cargo operations and offerings for both Delta and LATAM, experts have said. The proceeds of the sale will go towards the investment and to help LATAM with transition costs. Five-year notes that mature in 2024 will offer 2.9% interest and raise US$900m. Another $600m is being raised with 3.75% notes that mature in 10 years. <br/>
