Delta amends credit facility to include stricter covenants
Delta said Thursday it has amended its $2.65b credit facility agreement with covenants, which include restricting the US airline's ability to pay dividends or repurchase stock before Sept. 30, 2021. The amendment also requires the company to maintain a minimum liquidity of $2b. The amended facility includes a $1.33b three-year facility, $1.25b of which has been extended for an additional year to April 2022, and a new $216m standby letter of credit facility, which matures in April 2022. Last month, Delta Air Lines forecast a 90% plunge in Q2 revenue and warned it would need to renegotiate its debt agreements to avoid a default next year. The company now has the option of pledging aircraft, among other assets, as additional collateral, Delta said in a filing.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-07-03/sky/delta-amends-credit-facility-to-include-stricter-covenants
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Delta amends credit facility to include stricter covenants
Delta said Thursday it has amended its $2.65b credit facility agreement with covenants, which include restricting the US airline's ability to pay dividends or repurchase stock before Sept. 30, 2021. The amendment also requires the company to maintain a minimum liquidity of $2b. The amended facility includes a $1.33b three-year facility, $1.25b of which has been extended for an additional year to April 2022, and a new $216m standby letter of credit facility, which matures in April 2022. Last month, Delta Air Lines forecast a 90% plunge in Q2 revenue and warned it would need to renegotiate its debt agreements to avoid a default next year. The company now has the option of pledging aircraft, among other assets, as additional collateral, Delta said in a filing.<br/>
