Delta accelerates term B commitment deadline; US Foods, AppLovin price talk emerges

By Sara Rosenberg

New York, April 24 – In the primary market on Friday, Delta Air Lines Inc. moved up the commitment deadline for its term loan B, and US Foods Inc. and AppLovin Corp. released price talk with launch.

Delta revised the deadline on its $1.5 billion three-year first-lien senior secured term loan B (Baa2/BBB-) to noon ET on Monday from noon ET on Tuesday, according to a market source.

Price talk on the term loan is Libor plus 500 basis points with a 1% Libor floor and an original issue discount of 97, and the loan is non-callable for one year, with a make-whole call at Treasuries plus 50 bps.

The term loan has 50 bps MFN in the context of any incremental term loan issuance, amortization of 1% per annum, and maintenance covenants that include a minimum collateral coverage ratio of 1.6x tested semiannually and a minimum unrestricted liquidity threshold of $2 billion at all times.

Security is a diverse pool of slots, gates and routes collateral comprised of domestic slots at New York-JFK, New York-LaGuardia and Reagan National Airport, slots at Heathrow, London routes, other European and Latin American routes.

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