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 $150 million USD to this loan (Record ID#110846), 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 extension amendment can be accessed at https://www.sec.gov/Archives/edgar/data/27904/000002790420000010/dal6302020ex105.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 June 2020 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%.