Delta to raise $3 billion in debt to combat virus fallout

Published 04/22/2020, 08:16 PM
Updated 04/22/2020, 08:20 PM
© Reuters. FILE PHOTO: Delta Air Lines passenger planes parked in Birmingham
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(Reuters) - Delta Air Lines Inc (N:DAL) on Wednesday said it intended to raise $3 billion in debt by offering senior secured notes and entering into a new credit facility, in a bid to combat the slowdown in air travel demand induced by the coronavirus crisis.

The company said it would offer $1.5 billion in aggregate principal amount of senior secured notes due 2025 and intended to enter into a new $1.5 billion Term Loan B facility due 2023.

Atlanta-based Delta reported its first first-quarter loss in nine years and forecast a 90% decline in second-quarter revenue as the coronavirus crisis devastates air travel demand.

© Reuters. FILE PHOTO: Delta Air Lines passenger planes parked in Birmingham

Chief Executive Officer Ed Bastian had said the company expected to raise several billion dollars more in financing in coming months.

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