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ATLANTA, Jan. 30, 2007 (PRIME NEWSWIRE) -- Delta Air Lines (Other OTC
ALRQ.PK - News) announced today that it has obtained commitments for a $2.5 billion exit financing facility, marking a significant step forward for the company's plan to exit bankruptcy in Spring 2007 as a strong, well-capitalized standalone carrier.
The exit facility will be co-led by six financial institutions -- JPMorgan, Goldman Sachs & Co., Merrill Lynch, Lehman Brothers, UBS, and Barclays Capital -- and will consist of a $1 billion first-lien revolving credit facility, a $500 million first-lien Term Loan A, and a $1 billion second-lien Term Loan B. The facility will be secured by substantially all of the first-priority collateral in the existing debtor-in-possession facilities.
Edward H. Bastian, Delta's executive vice president and chief financial officer, said: ``This is an important milestone in the successful implementation of our restructuring plan. The competitive terms and unique structure of this financing package reflect our considerable progress and the soundness of Delta's standalone plan of reorganization. We appreciate the confidence the financial markets are showing by making this commitment in support of Delta's standalone plan. We look forward to partnering with our lenders through the exit process and into the future.''
As co-lead arrangers of the exit facility, the financial institutions made the following statements in support of the proposed transaction:
-- "JPMorgan is pleased to partner with our long-time client Delta
in leading their benchmark financing. We are looking forward to
aiding Delta in their successful reorganization and standalone
exit from bankruptcy."
-- "Goldman Sachs appreciates the opportunity to take a leadership
role in Delta's landmark exit financing and believes Delta is well
positioned to emerge from bankruptcy. Goldman Sachs has had a
long-standing relationship with Delta and looks forward to helping
Delta pursue its strategic plan."
-- "We are pleased to help lead Delta's exit financing. Merrill Lynch
looks forward to continuing to work with Delta Air Lines as the
company executes its standalone strategic plan."
-- "Lehman Brothers is delighted to play a leading role in this
important financing for Delta, and to support the company as it
emerges from bankruptcy as a strong global carrier."
-- "UBS is excited to be involved in Delta's exit financing and
helping Delta emerge on a standalone basis."
-- "Delta Air Lines is an icon in the airline industry and Barclays
Capital is honored to play a key role in the remarkable turnaround
of the last 16 months. We look forward to contributing to the next
chapters of this impressive story."
Proceeds from the facility will be used by Delta to repay its $2.1 billion debtor-in-possession credit facilities led by GE Capital and American Express, to make other payments required upon exit from bankruptcy, and to increase its already strong cash balance.
ALRQ.PK - News) announced today that it has obtained commitments for a $2.5 billion exit financing facility, marking a significant step forward for the company's plan to exit bankruptcy in Spring 2007 as a strong, well-capitalized standalone carrier.The exit facility will be co-led by six financial institutions -- JPMorgan, Goldman Sachs & Co., Merrill Lynch, Lehman Brothers, UBS, and Barclays Capital -- and will consist of a $1 billion first-lien revolving credit facility, a $500 million first-lien Term Loan A, and a $1 billion second-lien Term Loan B. The facility will be secured by substantially all of the first-priority collateral in the existing debtor-in-possession facilities.
Edward H. Bastian, Delta's executive vice president and chief financial officer, said: ``This is an important milestone in the successful implementation of our restructuring plan. The competitive terms and unique structure of this financing package reflect our considerable progress and the soundness of Delta's standalone plan of reorganization. We appreciate the confidence the financial markets are showing by making this commitment in support of Delta's standalone plan. We look forward to partnering with our lenders through the exit process and into the future.''
As co-lead arrangers of the exit facility, the financial institutions made the following statements in support of the proposed transaction:
-- "JPMorgan is pleased to partner with our long-time client Delta
in leading their benchmark financing. We are looking forward to
aiding Delta in their successful reorganization and standalone
exit from bankruptcy."
-- "Goldman Sachs appreciates the opportunity to take a leadership
role in Delta's landmark exit financing and believes Delta is well
positioned to emerge from bankruptcy. Goldman Sachs has had a
long-standing relationship with Delta and looks forward to helping
Delta pursue its strategic plan."
-- "We are pleased to help lead Delta's exit financing. Merrill Lynch
looks forward to continuing to work with Delta Air Lines as the
company executes its standalone strategic plan."
-- "Lehman Brothers is delighted to play a leading role in this
important financing for Delta, and to support the company as it
emerges from bankruptcy as a strong global carrier."
-- "UBS is excited to be involved in Delta's exit financing and
helping Delta emerge on a standalone basis."
-- "Delta Air Lines is an icon in the airline industry and Barclays
Capital is honored to play a key role in the remarkable turnaround
of the last 16 months. We look forward to contributing to the next
chapters of this impressive story."
Proceeds from the facility will be used by Delta to repay its $2.1 billion debtor-in-possession credit facilities led by GE Capital and American Express, to make other payments required upon exit from bankruptcy, and to increase its already strong cash balance.
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