Delta Raises Bond Sale to $9 Billion, Largest Debt Offering in Airline History
Delta Air Lines (NYSE: DAL) has increased the size of a planned debt offering to $9 billion, up from $6.5 billion, due to strong demand for the new debt, Bloomberg reported today. That would be the industry's largest debt deal on record, a clear sign that markets remain open to airlines in need of additional funds to survive the coronavirus crisis.
Delta said Monday it intends to sell bonds and enter into a new credit facility backed by its SkyMiles frequent flyer program, seeking to raise $6.5 billion in private funds instead of going to the U.S. Treasury for loans authorized under the CARES Act. The industry is scrambling to raise cash to ride out a slowdown in demand due to the pandemic.
Image source: Delta Air Lines.
Source Fool.com
