Delta Air Lines plans $269 million in term loan facilities for 14 aircraft in its fleet.
The private placements include a $152 million facility due in March 2021 and a $117 million facility due in September 2020, a Moody’s Investors Service report shows.
The 2021 loan is secured by six aircraft, including two Airbus A319s, two Airbus A330-200s and two A330-300s, and the 2020 loan by eight aircraft, including four A319s, one Airbus A320, two A330-300s and one Boeing 737-800, the rating agency says.
Proceeds from the facilities will be used for general corporate purposes and to refinance portions of the existing debt against the collateral pool, says Moody’s.
The facilities are rated Baa2, one notch above Delta’s investment grade Baa3 rating, by the rating agency.
Delta president Ed Bastian said earlier in March that the Atlanta-based carrier did not need new unsecured debt in 2016 due to its strong cash flow, which averaged $3.2 billion from 2013 through 2015. However, he did not rule out new secured debt.
The airline was not immediately available for comment.
Source: Cirium Dashboard
