Reuters reported yesterday that Delta successfully sold debt, $1.35 billion of notes in fact, up from $1.25 billion. It should be noted, however, that both offerings sold at discounts, so the total cash raised was more in the area of $1.31 billion.
Yields for the offerings were 9.875% for notes due in 2014, and 13% for the notes due in 2015.
So, Delta ws able to get some more cash, but those yields seem kind of high, though I’m no bond expert.
The next question – what will they do with it? Some will be used to take care of Northwest debt, but there’s more cash than that. Is Delta building up cash for a potential JAL stake?
My $20 would be on them simply building up cash for the slow time through next summer.