Delta to sell $1.25 billion of notes for general goals
New $500 million added Tuesday, to be secured by lien on Pacific slots.
Originally Posted by sailingfun
It means that Delta management is taking your concessions and retirement and going shopping with it!!! In the past Delta management has been prone to impulsive buys. Lets see if they do better this time.
By Gabrielle Coppola
Wednesday, September 23, 2009
Delta Airlines Inc. plans to sell $1.25 billion of notes as soon as today, according to a person familiar with the offering.
The carrier is marketing $750 million of first-lien notes due in September 2015 that may yield 9.875 percent, said the person, who declined to be identified because terms aren’t set.
Delta added $500 million of second-lien notes due in March 2015 that may price to yield about 13 percent, the person said.
Delta said it plans to use the proceeds of the second-lien notes for general corporate purposes.
The notes will be secured by a lien on Delta’s Pacific route authorities, slots and gate leases.
The move comes after Delta last week announced a $500 million private debt offering due 2014 to refinance debt from merger partner Northwest Airlines.
Separately, Delta and other airlines are reportedly in talks about making an investment of several hundred million dollars in Japan Airlines.
9.875 percent??? That's not baaaaad. I'm guessing they would still be junk rated though. Any ideas here?
Wall street doesn't seem to care much about it though. stock is down this morning.
On a seperate note: Lane Kiffin is da man!