(TAN): Delta Air Lines on Thursday announced the upsize and pricing of the previously announced private offering by Delta and its indirect wholly owned subsidiary, SkyMiles IP Ltd.
An aggregate of USD 2.5 billion in principal amount of 4.5% senior secured notes due 2025 and an aggregate of USD 3.5 billion in principal amount of 4.75% senior secured notes due 2028 (collectively the “Notes”) are expected to be issued on September 23, 2020, subject to customary closing conditions.
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The Notes will be issued at a price to investors of 100% of their principal amount. Concurrently with the issuance of the Notes, Delta and SkyMiles expect to enter into a credit agreement providing for a USD 3 billion term loan facility, also subject to customary closing conditions.
In total, the Notes and the USD 3 billion term loan facility will provide gross proceeds of USD 9 billion, an increase of USD 2.5 billion from the anticipated original USD 6.5 billion deal size, at a blended average annual rate of 4.75%.
