Delta Air Lines today announced
that it has entered into a commitment letter with GE Commercial Finance to
provide $500 million of financing. $300 million of the financing will be in the form of a senior secured
revolving credit facility and $200 million will be in the form of a senior
secured term loan. Both portions of the loan are subject to significant
conditions, including completion of due diligence and other conditions
that are set forth in greater detail in a form 8-K that Delta Air Lines
will be filing with the Securities and Exchange Commission. Up to $100
million of the financing will be provided by American Express Travel
Related Services Company under a previously announced commitment.

The revolving credit facility will be collateralized by a portion of
Delta’s accounts receivable. The $200 million term loan will be
collateralized by a pool of a substantial portion of Delta’s remaining
unencumbered assets. The facility will mature three years from the closing
date. The term loan will be payable in 12 equal monthly installments,
commencing on the second anniversary of the closing date.

“We have made significant strides in what is currently a critical period
for the company,” said Michael J. Palumbo, Delta’s executive vice
president and chief financial officer. “While there is a significant
amount of work yet to be accomplished, these developments will make a
meaningful contribution to the massive company-wide effort underway to
transform our airline.”
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