Delta gives early results in tender offer for up to $1.5 billion notes

By Mary-Katherine Stinson

Lexington, Ky., Aug. 1 – Delta Air Lines, Inc. announced the early results of its capped tender offer for up to a total purchase price of $1.5 billion of notes from four series, according to a press release Monday.

The early tender deadline was 5 p.m. ET on July 29 which was also the withdrawal deadline.

The results are as follows, listed in priority acceptance order:

• $477,865,000 of the $2,019,378,500 outstanding 7% senior secured notes due 2025 (Cusip: 247361ZX9) were tendered and accepted for purchase at a consideration of $1,042.50 per $1,000 note;

• $83,517,000 of the $940,646,000 outstanding 7.375% notes due 2026 (Cusip: 247361ZZ4) were tendered and accepted for purchase at a consideration of $1,045 per $1,000 note;

• $855,822,085 of the $2.5 billion outstanding 4.5% senior secured notes due 2025 co-issued by Delta Air Lines and SkyMiles IP Ltd. (Cusips: 830867AA5, G8200VAA3) were tendered and accepted for purchase at a consideration of $992.50 per $1,000 note; and

• $83.7 million of the $421,188,000 outstanding 3.8% notes due 2023 (Cusip: 247361ZP6) were tendered, of which $65,228,000 were accepted for purchase at a total consideration of $998.75 per $1,000 note.

The 2023 notes will be prorated at 77.9% since they exceeded the maximum tender amount.

As previously reported, the considerations include a $30 early tender premium, and Delta will also pay interest on the notes to the settlement date.

The company has elected to have an early settlement on Aug. 2.

The tender offer will expire at 11:59 p.m. ET on Aug. 12. Final settlement is planned for Aug. 15.

However, since the offer exceeded the maximum, no tenders will be accepted for purchase after the early deadline.

Consummation of the tender offer is subject to some conditions.

BofA Securities (980 388-0539 or debt_advisory@bofa.com) and Citigroup Global Markets Inc. (212 723-6106 or ny.liabilitymanagement@citi.com) are the lead dealer managers.

BNP Paribas Securities Corp., MUFG Securities Americas Inc. and PNC Capital Markets LLC are the dealer managers.

D.F. King & Co., Inc. (800 967-5084, 212 269-5550, dal@dfking.com) is the tender agent and information agent.

Delta is a commercial airline based in Atlanta.

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