spinproof
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ATLANTA, Jan. 30, 2007 (PRIME NEWSWIRE) -- Delta Air Lines (Other OTC:DALRQ.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.
Mr. Bastian continued, ``Delta has made enormous progress over the past 16 months in transforming the airline into a strong, healthy, and vibrant competitor. While many companies use the bankruptcy process simply to shore up their balance sheet and reduce debt, our company undertook a top-to-bottom re-engineering that touched every aspect of how we do business.
We are using the bankruptcy process to improve and strengthen our airline.''
Delta's accomplishments have included: -- Reduced costs and improved unit revenues, positioning the airline to emerge from Chapter 11 with the lowest unit costs of any network carrier. Delta has improved productivity and eliminated approximately $2 billion in annual costs. -- A stronger, more balanced network as a result of rapid expansion of international routes with the highest profit potential.
In the past year Delta has undertaken the largest international expansion in its history, and is a leader across the Atlantic with flights to 31 trans-Atlantic destinations. -- Significantly reduced net debt from $17 billion to an anticipated $7.5 billion by the end of 2007. -- Improved liquidity position, totaling $2.6 billion in unrestricted cash, cash equivalents and short-term investments as of December 31, 2006. -- An expected consolidated equity value upon exiting Chapter 11 estimated by The Blackstone Group to be between $9.4 billion and $12 billion.
Importantly, customer service standards and operational performance were improved as Delta achieved these gains, with the prestigious J.D. Power and Associates customer satisfaction survey for 2006 ranking Delta as one of the top two domestic network airlines.
About Delta
Delta Air Lines offers customers service to more destinations than any global airline with Delta and Delta Connection carrier service to 303 destinations in 52 countries. With more than 50 new international routes added in the last year, Delta is America's fastest growing international airline and is a leader across the Atlantic with flights to 31 trans-Atlantic destinations. To Latin America and the Caribbean, Delta offers more than 400 weekly flights to 56 destinations.
Delta's marketing alliances also allow customers to earn and redeem SkyMiles on more than 14,000 flights offered by SkyTeam and other partners. Delta is a founding member of SkyTeam, a global airline alliance that provides customers with extensive worldwide destinations, flights and services. Including its SkyTeam and worldwide codeshare partners, Delta offers flights to 459 worldwide destinations in 97 countries. Customers can check in for flights, print boarding passes and check flight status at delta.com.
The Delta logo is available at http://www.primezone.com/newsroom/prs/?pkgid=1825
Complete story located @ http://biz.yahoo.com/pz/070130/112716.html
.
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.
Mr. Bastian continued, ``Delta has made enormous progress over the past 16 months in transforming the airline into a strong, healthy, and vibrant competitor. While many companies use the bankruptcy process simply to shore up their balance sheet and reduce debt, our company undertook a top-to-bottom re-engineering that touched every aspect of how we do business.
We are using the bankruptcy process to improve and strengthen our airline.''
Delta's accomplishments have included: -- Reduced costs and improved unit revenues, positioning the airline to emerge from Chapter 11 with the lowest unit costs of any network carrier. Delta has improved productivity and eliminated approximately $2 billion in annual costs. -- A stronger, more balanced network as a result of rapid expansion of international routes with the highest profit potential.
In the past year Delta has undertaken the largest international expansion in its history, and is a leader across the Atlantic with flights to 31 trans-Atlantic destinations. -- Significantly reduced net debt from $17 billion to an anticipated $7.5 billion by the end of 2007. -- Improved liquidity position, totaling $2.6 billion in unrestricted cash, cash equivalents and short-term investments as of December 31, 2006. -- An expected consolidated equity value upon exiting Chapter 11 estimated by The Blackstone Group to be between $9.4 billion and $12 billion.
Importantly, customer service standards and operational performance were improved as Delta achieved these gains, with the prestigious J.D. Power and Associates customer satisfaction survey for 2006 ranking Delta as one of the top two domestic network airlines.
About Delta
Delta Air Lines offers customers service to more destinations than any global airline with Delta and Delta Connection carrier service to 303 destinations in 52 countries. With more than 50 new international routes added in the last year, Delta is America's fastest growing international airline and is a leader across the Atlantic with flights to 31 trans-Atlantic destinations. To Latin America and the Caribbean, Delta offers more than 400 weekly flights to 56 destinations.
Delta's marketing alliances also allow customers to earn and redeem SkyMiles on more than 14,000 flights offered by SkyTeam and other partners. Delta is a founding member of SkyTeam, a global airline alliance that provides customers with extensive worldwide destinations, flights and services. Including its SkyTeam and worldwide codeshare partners, Delta offers flights to 459 worldwide destinations in 97 countries. Customers can check in for flights, print boarding passes and check flight status at delta.com.
The Delta logo is available at http://www.primezone.com/newsroom/prs/?pkgid=1825
Complete story located @ http://biz.yahoo.com/pz/070130/112716.html
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