Delta Air Lines is looking to sell US$500 million of five-year senior secured bonds later this month, Dow Jones reported.
The bond sale marks a rare step into the high-yield market for the airline. However, it completed its merger with Northwest Airlines less than a year ago and has repeatedly said it could look to refinance debt once the carriers became a single entity. Proceeds from the bond sale will refinance Northwest's bank loans.
Delta said it is also planning a new senior credit facility, and plans to use its Pacific route authorities, slots and gate leases to secure the new bonds. The Pacific assets will also stand as collateral for Delta's new loan.
Delta didn't specify the size of the new loans, but two people familiar with the situation said the company would put in place a new $500 million revolving credit facility as well as a new $500 million term loan. Both the new term loan and revolver are expected to mature in 2013, according to sources. |
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Source: cargonewsasia
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