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
Data giant S&P Global Inc. has agreed to acquire information and analytics company IHS Markit Ltd. in an all-stock deal, the two companies said Monday. The deal values IHS Markit at an enterprise value of $44 billion, including $4.8 billion of net debt. Shares of IHS Markit are gaining almost 6 percent following the news. The deal is the biggest in 2020. Moderna, Inc. (MRNA) said it will apply for an Emergency Use approval of its Covid vaccine as the latest study showed that the vaccine candidate is 94.1% effective to prevent Covid-19. The company said there have been no serious safety concerns identified. The company will file for an Emergency... Vegpro International is recalling Fresh Attitude baby spinach citing potential to be contaminated with Salmonella, according to the U.S. Food and Drug Administration. The recall involves Fresh Attitude baby spinach of 5oz with best before dates of December 4 & 5; and 11oz with best before date of December 4.
Follow RTT