By Paul A. Harris
Portland, Ore., April 27 – Delta Air Lines, Inc. priced a massively upsized $3.5 billion issue of five-year senior secured first-lien bullet notes (Baa2/BBB-) at par to yield 7% on Monday, according to market sources.
The issue size increased from the $1 billion minimum amount announced early Monday. The offer was announced to the market during the April 20 week at a size of $1.5 billion.
The yield printed at the wide end of the 6¾% to 7% yield talk and in line with initial talk in the 7% area.
Bookrunners were J.P. Morgan Securities LLC, Barclays, BofA Securities Inc., BBVA Securities Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, SMBC Nikko Securities America Inc., Standard Chartered Bank, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC.
The Atlanta-based air carrier also syndicated a $1.5 billion term loan on Monday.
Both the bond and loan tranches are secured by the airline’s domestic slots at John F. Kennedy International Airport, LaGuardia Airport and Ronald Reagan Washington National Airport, as well as its London routes, its European routes and its Latin American routes.
Proceeds will be used for general corporate purposes.
| Issuer: | Delta Air Lines, Inc.
|
| Amount: | $3.5 billion, upsized from $1.5 billion
|
| Maturity: | May 1, 2025
|
| Securities: | Senior secured first-lien notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Barclays, BofA Securities Inc., BBVA Securities Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, SMBC Nikko Securities America Inc., Standard Chartered Bank, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Spread: | 661 bps
|
| Call protection: | Non-callable
|
| Trade date: | April 27
|
| Settlement date: | April 29
|
| Ratings: | Moody's: Baa2
|
| S&P: BBB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6¾% to 7%
|
| Marketing: | Roadshow
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
