Fitch rates Delta notes BBB-

Fitch Ratings said it assigned a BBB-/RR1 rating to Delta Air Lines Inc.’s proposed secured notes. Fitch rates Delta at BB+ with a negative outlook.

Delta plans to raise $3 billion in secured debt with a three-year term loan and five-year secured notes, the exact split is to be determined, Fitch said.

The notes and term loan will be secured on a pari passu basis by a pool of the company's slots, gates, and routes, consisting of domestic slots at John F. Kennedy International Airport, LaGuardia Airport, Ronald Reagan Washington National Airport, slots at Heathrow Airport, Delta's London route rights, other European route rights and Latin American route rights.

The proceeds will be used to bolster liquidity during the ongoing downturn.

© 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.