Delta Air Lines seeks US$3b in bonds, loan on shutdown
Delta Air Lines is seeking to raise US$3b from loans and bonds as it grapples with a global travel shutdown caused by the coronavirus pandemic. The company is offering 5-year bonds to investors at a yield of about 7%, according to people familiar with the matter. Delta is also seeking a term loan under the plan, and the financing would be evenly split between the two, the company said late Wednesday. The debt will be secured by collateral including domestic slots at New York airports and those at Heathrow in London as well as other European and Latin American routes. Delta’s latest debt will help boost liquidity, after the company reported Wednesday that Q1 sales tumbled 18% to US$8.59b.The company also vowed to cut its daily cash burn in half as it seeks to scale back operations. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-04-24/sky/delta-air-lines-seeks-us-3b-in-bonds-loan-on-shutdown
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Delta Air Lines seeks US$3b in bonds, loan on shutdown
Delta Air Lines is seeking to raise US$3b from loans and bonds as it grapples with a global travel shutdown caused by the coronavirus pandemic. The company is offering 5-year bonds to investors at a yield of about 7%, according to people familiar with the matter. Delta is also seeking a term loan under the plan, and the financing would be evenly split between the two, the company said late Wednesday. The debt will be secured by collateral including domestic slots at New York airports and those at Heathrow in London as well as other European and Latin American routes. Delta’s latest debt will help boost liquidity, after the company reported Wednesday that Q1 sales tumbled 18% to US$8.59b.The company also vowed to cut its daily cash burn in half as it seeks to scale back operations. <br/>
