Delta Plans to Follow United With Debt Backed by Loyalty Program
- Loans and bonds to be marketed to investors post Labor Day
- Issuance would follow United’s upsized $6.8 billion June deal
Photographer: Angus Mordant/Bloomberg
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Delta Air Lines Inc. is preparing to issue new debt backed by its frequent-flyer program, the latest to use miles to help boost liquidity amid the Covid-19 pandemic.
The airline is set to market new loans and bonds secured by its SkyMiles loyalty program after the U.S. Labor Day holiday on Sept. 7, according to people with knowledge of the matter. The size of the deal and terms, including yield, are still being finalized and could change, said one of the people, asking not to be identified discussing a private matter.