Citigroup (C) Helping Delta Air Lines (DAL) Land $250 Million Loan

Delta Air Lines Inc. (NYSE:DAL), the world’s second-largest carrier, is seeking a $250 million five-year term loan to replace existing debt, according to a person familiar with the deal.

Price guidance on the loan is 3.25 percentage points more than the London interbank offered rate, with a 1.25 percent minimum on the lending benchmark, said the person, who declined to be identified because the terms are private. The loan is expected to price at 99.5 cents on the dollar.

Citigroup Inc. (NYSE:C) is the lead arranger on the loan, according to the person. Commitments from investors are due March 2.

United Airlines and Continental Airlines merged in October to create United Continental Holdings Inc., surpassing Delta as the world’s biggest carrier.



Source: BusinessWeek