Delta closes a total of $2.1 billion in loans, making progress toward 2010 debt payments
By APWednesday, September 30, 2009
Delta closes $2.1 billion in loans
ATLANTA — Delta Air Lines Inc. says it has closed on $2.1 billion worth of financing, which will help with the major debt payments it has due next year.
The world’s biggest airline says it refinanced about $1.5 billion in debt from Northwest Airlines, which it acquired last year. It says the transaction generated another $600 million in cash. The transactions were first announced earlier this month.
Delta says the loans address more than 40 percent of the debt that comes due next year. It says the whole transaction has an effective interest rate of 9.2 percent.
Delta says it expects to end the quarter on Wednesday with $5.6 billion in cash.
The new debt is secured by Delta’s Pacific routes, including route authorities, slots, and gate leases.
|
October 9, 2009: 12:28 am
Since, the borrower wants the best deal from the various offers available in the market, the only way left with him is to look at each offer individually and compare it with his requirements. Thus, by a sincere comparison, he will be able to know the pros and cons of each of the offers. |
Secured Loan