By Andrea Heisinger
New York, June 27 - Delta Air Lines, Inc. priced $479.89 million of class A and B pass-through certificates on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
The $353.69 million of 4.75% class A certificates (Baa2/A-/) priced at par to yield 4.75%. The certificates have an expected regular distribution of May 7, 2020 and an expected legal distribution of Nov. 7, 2021. The class As have an initial average life of 5.6 years.
Delta also priced $126.20 million of 6.875% class B certificates (Ba3/BB/) at par to yield 6.875%. These certificates have an expected regular distribution of May 7, 2019 and an expected legal distribution of Nov. 7, 2020. There is an initial average life of 4.9 years.
The certificates each have a make-whole call at 50 bps over Treasuries.
Bookrunners were Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and Morgan Stanley & Co. LLC.
Co-managers were Bank of America Merrill Lynch, Natixis SA and Wells Fargo Securities LLC.
Proceeds are being held in escrow and used to purchase equipment notes for aircraft. This includes nine Airbus aircraft delivered in 2002 to Northwest Airlines, Inc., two Airbus delivered to Northwest in 1998, one Boeing aircraft delivered in 2001, eight Boeing aircraft delivered from 1995 to 1997 and six new Boeing aircraft delivered in 2000.
Delta is a commercial airline based in Atlanta.
| Issuer: | Delta Air Lines, Inc.
|
| Issue: | Pass-through certificates
|
| Amount: | $479,892,000
|
| Bookrunners: | Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Morgan Stanley & Co. LLC
|
| Co-managers: | Bank of America Merrill Lynch, Natixis SA, Wells Fargo Securities LLC
|
| Trade date: | June 27
|
| Settlement date: | July 3
|
|
|
| Class A certificates
|
| Amount: | $353,689,000
|
| Regular distribution: | May 7, 2020
|
| Legal distribution: | Nov. 7, 2021
|
| Initial average life: | 5.6 years
|
| Coupon: | 4.75%
|
| Price: | Par
|
| Yield: | 4.75%
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: A-
|
|
|
| Class B certificates
|
| Amount: | $126,203,000
|
| Regular distribution: | May 7, 2019
|
| Legal distribution: | Nov. 7, 2020
|
| Initial average life: | 4.9 years
|
| Coupon: | 6.875%
|
| Price: | Par
|
| Yield: | 6.875%
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB
|
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