• DATVF.ATLPHL
    1.565
    -0.064
    -3.9%
  • DATVF.SEALAX
    1.015
    0.010
    1%
  • DATVF.VNU
    1.389
    -0.023
    -1.6%
  • DATVF.VWU
    1.518
    -0.019
    -1.2%
  • DATVF.VSU
    1.197
    -0.065
    -5.2%
  • DATVF.LAXSEA
    2.020
    -0.049
    -2.4%
  • DATVF.VEU
    1.452
    0.015
    1%
  • DATVF.LAXDAL
    1.532
    -0.087
    -5.4%
  • DATVF.CHIATL
    1.863
    0.112
    6.4%
  • DATVF.PHLCHI
    0.929
    0.000
    0%
  • DATVF.DALLAX
    0.861
    -0.044
    -4.9%
  • ITVI.USA
    9,614.760
    -86.220
    -0.9%
  • OTRI.USA
    5.220
    -0.030
    -0.6%
  • OTVI.USA
    9,603.790
    -87.620
    -0.9%
  • TLT.USA
    2.600
    0.020
    0.8%
  • WAIT.USA
    150.000
    0.000
    0%
  • DATVF.ATLPHL
    1.565
    -0.064
    -3.9%
  • DATVF.SEALAX
    1.015
    0.010
    1%
  • DATVF.VNU
    1.389
    -0.023
    -1.6%
  • DATVF.VWU
    1.518
    -0.019
    -1.2%
  • DATVF.VSU
    1.197
    -0.065
    -5.2%
  • DATVF.LAXSEA
    2.020
    -0.049
    -2.4%
  • DATVF.VEU
    1.452
    0.015
    1%
  • DATVF.LAXDAL
    1.532
    -0.087
    -5.4%
  • DATVF.CHIATL
    1.863
    0.112
    6.4%
  • DATVF.PHLCHI
    0.929
    0.000
    0%
  • DATVF.DALLAX
    0.861
    -0.044
    -4.9%
  • ITVI.USA
    9,614.760
    -86.220
    -0.9%
  • OTRI.USA
    5.220
    -0.030
    -0.6%
  • OTVI.USA
    9,603.790
    -87.620
    -0.9%
  • TLT.USA
    2.600
    0.020
    0.8%
  • WAIT.USA
    150.000
    0.000
    0%
Air CargoFinanceNews

Delta borrowing $1.5 billion to pay for LATAM Airlines stake

Delta Air Lines [NYSE: DAL] is selling $1.5 billion worth of bonds to help pay for its 20% stake in South American carrier LATAM Airlines, according to a prospectus filed with the Securities and Exchange Commission Wednesday afternoon.

The Atlanta-based airline announced its intent four weeks ago to form a joint venture with LATAM to quickly increase its business in Latin America by connecting with LATAM’s extensive airport network, and helping LATAM reach more customers in North America, Europe and Asia. The move also is expected to significantly enhance the cargo operations and offerings for both Delta and LATAM, experts have said. 

The proceeds of the sale will go towards the investment and to help LATAM with transition costs. Five-year notes that mature in 2024 will offer 2.9% interest and raise $900 million. Another $600 million is being raised with 3.75% notes that mature in 10 years. 

Delta plans to use $725 million in cash for the balance of the LATAM deal. 

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Eric Kulisch

Eric is the West Coast Air Cargo Reporter at FreightWaves. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. He won a regional Gold Medal from the American Society of Business Publication Editors for government coverage, and was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. Eric is based in Portland, Oregon. He can be reached for comments and tips at ekulisch@freightwaves.com

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