Delta Air Lines reports early tender results for 9½% notes, 11¾% notes

By Toni Weeks

San Diego, Oct. 16 - Delta Air Lines said it received tenders and consents from holders of $405.6 million, or 67.6%, of its $500 million of 9½% senior secured notes due 2014 and $239.9 million, or 78.4%, of its $306,185,000 of 11¾% senior second-lien notes due 2015 by 5 p.m. ET on Oct. 15, the early tender deadline for the company's tender offer.

Delta also said it received enough consents to adopt base amendments to the indentures for the notes to eliminate substantially all of the restrictive covenants and some events of default contained in the indentures. The company needed consents from more than 75% of holders to release the collateral securing the notes, which it obtained in respect of the 11¾% notes.

Holders who validly tendered their notes and delivered consents by the early tender deadline will receive $1,052.50 and $1,095.00 per $1,000 principal amount of 9½% and 11¾% notes, respectively, which includes an early tender payment of $30.00. Delta will also pay accrued interest up to but not including Oct. 18, the settlement date for notes tendered by the early deadline.

Holders may no longer withdraw consents or notes tendered.

The tender offers are subject to a financing condition and general conditions.

The tender offer will expire at 11:59 p.m. on Oct. 29.

D.F. King & Co., Inc. (800 769-4414 or 212-269-5550) is the tender agent and information agent. Barclays (800 438-3242 or 212 528-7581) and Goldman Sachs & Co. (800 828-3182 or 212 357-6436) are the dealer managers.

The airline company is based in Atlanta.

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