Delta Air Lines Inc. (DAL) said Monday that it and its subsidiary SkyMiles IP Ltd are planning to offer bonds and also enter a senior secured term loan facility for an aggregated $6.5 billion. SkyMiles will then lend Delta the proceeds, after depositing a portion in a reserve account. Delta will use the sum for general corporate purposes and to bolster liquidity. U.S. companies have been borrowing at record levels in 2020 during the pandemic. Delta shares rose 2% premarket, but have fallen 46% in the year to date, while the U.S. Global JETS ETF (JETS) has fallen 43%, and the S&P 500 has gained 3.4%.
-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
September 14, 2020 07:26 ET (11:26 GMT)
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