Delta Air Lines has refinanced its SkyMiles credit facility, the company said in an SEC filing submitted on Tuesday (September 30).
The amendment refinances the airline's existing term loans with new replacement term loans at a variable rate equal to an adjusted term SOFR — no less than 0% per annum — plus a reduced margin of 1.50% per annum, payable quarterly.
Annual amortisation payments were cut from 20% to 1%, payable quarterly.
Under the amendment agreement, the maturity date of the facility was extended by one year to October 20, 2028. The agreement adds a new prepayment premium of 1.00% for repricing events that occur within the next six months.
The original credit and guaranty agreement was signed September 23, 2020, with yesterday's agreement being the second modification to the facility's terms.
The SkyMiles credit facility operates through Delta's indirect wholly-owned subsidiary and Cayman Islands company SkyMiles IP. Barclays Bank acted as administrative agent, lead arranger, and lender for the facility.