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Overview

ICBC contributes $75 million USD to $1.35 billion USD three-year syndicated revolving credit facility to Delta Airlines for working capital and general corporate purposes in 2018 (Linked to Record ID#110847 and #110850)

Commitments (Constant USD, 2023)$75,472,222
Commitment Year•2018Country of Activity•United StatesDirect Recipient Country of Incorporation•United StatesOverseas Jurisdiction•United StatesSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Apr 19, 2018
Last repayment (originally scheduled)
Apr 18, 2021

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Cofinancing agencies

Private Sector

  • Bank of America, N.A.
  • Barclays Bank PLC
  • BBVA USA (formerly BBVA Compass or Compass Bank, now PNC Financial Services)
  • BNP Paribas S.A.
  • Citibank, N.A.
  • Crédit Agricole Corporate and Investment Bank (CACIB) (Crédit Agricole CIB) (Formerly Calyon) (Formerly Crédit Agricole Indosuez (CAI))
  • Credit Suisse AG
  • Deutsche Bank AG
  • Fifth Third Bank
  • Goldman Sachs Bank USA
  • JPMorgan Chase Bank, N.A. (Chase Bank, formerly the Chase Manhattan Bank)
  • Morgan Stanley Bank, N.A.
  • Natixis
  • PNC Bank, National Association
  • Standard Chartered Bank PLC
  • Sumitomo Mitsui Banking Corporation (SMBC)
  • U.S. Bank National Association
  • Wells Fargo Bank N.A.

Receiving agencies

Private Sector

  • Delta Air Lines, Inc.

Loan description

$2.65 billion USD syndicated revolving credit facility to Delta Airlines for working capital and general corporate purposes in 2018

Interest rate (t₀)•4.00938%Interest type•Variable Interest RateMaturity•3 years

Narrative

Full Description

Project narrative

On April 19, 2018, financial close was reached on a deal in which a syndicate of 19 banks — including ICBC — entered into a $2.65 billion USD syndicated loan agreement with Delta Air Lines, Inc., a U.S.-based international airline headquartered in Atlanta, Georgia. This loan was divided into two tranches: one $1.325 billion USD tranche with a 3-year maturity and another $1.325 billion USD tranche with a 5-year maturity. The interest rate was LIBOR plus an applicable margin. The proceeds were used by the borrower for working capital and general corporate purposes. While ICBC contributed $75 million USD to the 3 year facility loan (Record ID#110846) and $75 million to 5 year facility (Record ID#110850), the following lenders also participated: JPMorgan Chase Bank, N.A. ($150 million USD), Bank of America, N.A. ($150 million USD), Barclays Bank PLC ($150 million USD), BNP Paribas ($150 million USD), Citibank, N.A. ($150 million USD), Compass Bank ($150 million USD), Credit Suisse AG, Cayman Islands Branch ($150 million USD), Deutsche Bank AG New York Branch ($150 million USD), Fifth Third Bank ($150 million USD), Goldman Sachs Bank USA ($150 million USD), Morgan Stanley Bank, N.A. ($150 million USD), PNC Bank, National Association ($150 million USD), Standard Chartered Bank ($150 million USD), Sumitomo Mitsui Banking Corporation ($150 million USD), U.S. Bank National Association ($150 million USD), Wells Fargo Bank, N.A. ($150 million USD), Credit Agricole Corporate and Investment Bank ($50 million USD), and Natixis, New York Branch ($50 million USD). On June 29, 2020, the parties agreed to extend the 3-year loan agreement's maturity by one year to April 19, 2022. ICBC's contribution is recorded in Record ID#110847.

Staff comments

1. The entirety of the loan contract can be accessed at https://www.sec.gov/Archives/edgar/data/27904/000002790418000016/dal6302018ex101.htm 2. Delta Air Lines, Inc. is one of the major airlines of the United States and a legacy carrier headquartered in Atlanta, Georgia. The airline operates over 5,000 flights daily and is a founding member of the SkyTeam airline alliance. 3. AidData estimates the interest rate by adding the 6-month average LIBOR rate in April 2018 and an applicable margin based on Delta’s credit rating at the time. Delta held a BBB- rating from S&P in 2018, which suggests a typical margin of 1.5%.