Delta sells $1.25b of bonds in quick return to market

Delta returned to the bond market within weeks of its last visit, looking to support its liquidity and repay outstanding debt. The carrier sold $1.25b of five-year unsecured bonds that will yield 7.375%, according to a person with knowledge of the matter. The notes, which were originally marketed with a yield around 8%, carry high-yield ratings, but the offering was run by investment-grade debt syndicates, the person said. Delta borrowed $3.5b in April through a sale of five-year secured bonds, pledged by domestic slots at New York airports and those at Heathrow in London, but Wednesday’s offering comes with no collateral protection. It’s a sign of how much the market has rallied since then for Delta to merely announce an unsecured offering, especially when the stakes for strong collateral have never been so high. Delta has raised more than $10b since early March, including proceeds from a bond sale in April and two term loans, according to a filing Wednesday morning. <br/>