April 23, 2020 / 12:15 AM / a month ago

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

FILE PHOTO: Delta Air Lines passenger planes are seen parked due to flight reductions made to slow the spread of coronavirus disease (COVID-19), at Birmingham-Shuttlesworth International Airport in Birmingham, Alabama, U.S. March 25, 2020. REUTERS/Elijah Nouvelage/File Photo

(Reuters) - Delta Air Lines Inc (DAL.N) 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.

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

Reporting by Shubham Kalia in Bengaluru; Editing by Subhranshu Sahu

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