Delta Air Lines Inc, the worlds second-biggest
carrier, is seeking $1.7 billion in loans to refinance debt. The transaction
will consist of a $1 billion, six-year term loan B, a $250 million term loan
B-2 that matures in three and a half years and a $450 million revolving credit
line, Delta said in a regulatory filing.
The Atlanta-based company, which is also seeking $250
million of other debt financing, will hold a bank meeting on October 1 in New
York to discuss the loans, according to a person with knowledge of the deal.
Barclays Plc, Bank of America, BNP Paribas SA, Citigroup
Inc, Credit Suisse Group AG, Deutsche Bank AG, Goldman Sachs Group Inc,
JPMorgan Chase & Co, Morgan Stanley and UBS AG are arranging the loans,
said the person, who asked not to be identified because the transaction is
private.
Delta has speculative-grade ratings of B2 at Moody’s
Investors Service and B at Standard & Poors.
Under a revolver, money can be borrowed again once its
repaid; in a term loan, it cant. A term loan B is sold mainly to non-bank
lenders such as collateralised loan obligations, bank loan mutual funds and
hedge funds.
http://www.thehindubusinessline.com/todays-paper/tp-logistics/article3952308.ece
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