logo
Plus   Neg
Share
Email

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.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Incredible Fish, Inc. has recalled a small quantity of Incredible Stone Crab Mustard Sauce citing undeclared milk, fish, and eggs allergens, the U.S. Food and Drug Administration announced. The Miami-based wholesale seafood distributor sold the recalled product to a limited number of consumers between October 15 and October 22, 2020, primarily through the company's website. Facebook said Tuesday that it has helped 4.4 million people register to vote for the upcoming U.S. presidential election on November 3, exceeding the tech giant's goal of helping 4 million voters to register. In June, Facebook said it created a new Voting Information Center to provide users with authoritative information, including how and when to vote. Facebook has launched cloud-streamed games in the Facebook app and on browser, which are playable instantly, with no downloads required. These cloud-streamed games can be played right alongside those playing instant games in HTML5. The access to cloud games on Facebook will roll out in the US, initially across California, Texas and Northeast and Mid-Atlantic states.
Follow RTT