Delta Air Lines has priced a $2bn debt offering, comprising of $1bn of 4.950% senior unsecured notes due July 10, 2028, in addition to $1bn of 5.250% senior unsecured notes due July 10, 2030.
The 2028 notes are priced at 99.986% of the principal amount, with a maturity yield of 4.953%. This represents a spread of 105 basis points. The 2030 notes are priced at 99.795% of the principal amount, with a maturity yield of 5.295%. This represents a spread of 130 basis points.
Both sets of notes will pay interest from 2026, with this commencing semi-annually from January 10, 2026, with the next payment due on July 10, 2026. The offering is expected to settle on June 10, 2025.
The airline said that a portion of the net proceeds from the sale of these notes will pay approximately $1.65bn in borrowings outstanding under Delta’s unsecured payroll support program loan due April 19, 2030, with the remaining net proceeds to be used for general corporate purposes. The interest rate on this payroll support program loan is applicable SOFR plus 2.00%.
These notes issued by the Atlanta-based airline carry ratings of Baa2 from Moody’s, BBB- from S&P, and BBB- from Fitch. Minimum denominations are $2,000, with increments of $1,000 thereafter.
Delta said it is not required to establish a sinking fund to retire the notes prior to maturity. The notes will be our direct, unsecured and unsubordinated obligations and will rank equally, in right of payment with our other unsubordinated indebtedness.
Joint book runners on the transaction include Morgan Stanley, Barclays, J.P, Morgan Securities, US Bancorp Investments and Wells Fargo Securities. Passive bookrunners were Bank of America Securities, BNP Paribas, Citigroup, Deutsche Bank, Fifth Third Securities, Goldman Sachs, PNC Capital Markets, Standard Chartered and SMBC Nikko Securities America.
Comanagers on the transaction included Credit Agricole, MUFG Securities Americas, Natixis Securities Americas, Natwest and Regions Securities.
The offering supplements the company’s preliminary prospectus and is expected to support general corporate purposes, including potential refinancing of existing debt.