Delta starts tender offer for up to $1 billion from three series

Chicago, July 15 – Delta Air Lines, Inc. started a capped tender offer for up to an aggregate purchase price of $1 billion of notes from three series on Thursday, according to an announcement and a press release.

The company announced in a conference call on Wednesday that it plans to keep deleveraging. Delta took on $8 billion of debt during the Covid-19 pandemic.

The airline is offering to buy notes from the following series for the listed amounts, listed in priority acceptance order:

• $3.5 billion outstanding 7% senior secured notes due 2025 (Cusips: 247361ZX9) for a total consideration of $1,181.25 per $1,000 note;

• $1.25 billion outstanding 7 3/8% notes due 2026 (Cusip: 247361ZZ4) for a total consideration of $1,180 per $1,000 note; and

• $2.5 billion outstanding 4 ½% senior secured notes due 2025 (Cusips: 830867AA5, G8200VAA3) for a total consideration of $1,080 per $1,000 note.

The considerations include a $30 early tender premium.

Delta will also pay interest on the notes to the redemption date.

There is a series subcap on the 7% notes of $800 million.

The early tender deadline is 5 p.m. ET on July 28. Early settlement is expected for July 30.

The tender offer will expire at 11:59 p.m. ET on Aug. 11. Final settlement is planned for Aug. 13.

Wells Fargo Securities, LLC (866 309-6316, 704 410-4759, liabilitymanagement@wellsfargo.com) and Deutsche Bank Securities Inc. (866 627-0391, 212 250-2955) are the lead dealer managers.

Fifth Third Securities, Inc. and Standard Chartered Bank are the dealer managers.

D.F. King & Co., Inc. is the tender agent and information agent (800 769-7666, 212 269-5550, dal@dfking.com).

Delta is a commercial airline based in Atlanta

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