Delta SkyMiles launches $2.5 billion loan at Libor plus 425-450 bps

By Sara Rosenberg

New York, Sept. 14 – Delta Air Lines Inc. and SkyMiles IP Ltd. held a lender call at 1 p.m. ET on Monday to launch a $2.5 billion seven-year senior secured term loan (Baa1//BBB) that is talked at Libor plus 425 basis points to 450 bps with a 1% Libor floor and an original issue discount of 98.5, according to a market source.

The term loan is non-callable for three years, then at 104 in year four and 102 in year five, the source said.

Amortization is 20% beginning in year three.

Security is all the relevant SkyMiles assets including, but not limited to, relevant SkyMiles Intellectual Property, material SkyMiles agreements including applicable Amex agreements, cash collection accounts and other relevant assets.

Barclays and Goldman Sachs Bank USA are the bookrunners on the deal, with Barclays the administrative agent.

Commitments are due at noon ET on Thursday, the source added.

Proceeds will be used with $4 billion of senior secured notes for general corporate purposes and to support the company’s liquidity position.

Delta is an Atlanta-based airline company. SkyMiles is a newly formed bankruptcy-remote Cayman special purpose vehicle to hold all SkyMiles program collateral.

© 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.