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Delta Air, SkyMiles IP To Commence Private Offering Of Senior Secured Notes - Quick Facts

Delta Air Lines, Inc. (DAL) announced Monday that the Company and SkyMiles IP Ltd. intend to commence a private offering to eligible purchasers of senior secured notes in one or more tranches, subject to market and other conditions, and to enter into a senior secured term loan facility concurrently with the closing of the offering of the Notes.

The aggregate principal amount of the Notes and the New Credit Facility is expected to be $6.5 billion. SkyMiles IP is a newly formed Cayman Islands exempted company incorporated with limited liability and an indirect wholly owned subsidiary of Delta.

Delta and SkyMiles IP will be co-issuers of the Notes and co-borrowers under the New Credit Facility. The Notes and the New Credit Facility will be guaranteed by certain of Delta's subsidiaries. The offering of the Notes is not contingent upon the closing of the New Credit Facility.

The Notes and New Credit Facility will be secured on a pari passu senior basis by a first-priority security interest in Delta's SkyMiles program, including Delta's rights under certain related agreements, intellectual property, and other collateral related to the SkyMiles program.

SkyMiles IP Ltd. intends to lend the net proceeds from the offering of the Notes and the New Credit Facility to Delta, after depositing a portion of the proceeds in a reserve account. Delta expects to use the proceeds of the Notes and New Credit Facility for general corporate purposes and to bolster its liquidity position.

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