FILE PHOTO: Delta Air Lines passenger planes are seen parked due to flight reductions made to slow the spread of coronavirus disease , at Birmingham-Shuttlesworth International Airport in Birmingham, Alabama, U.S. March 25, 2020. REUTERS/Elijah Nouvelage
- Delta Air Lines Inc said on Thursday it has amended its $2.65 billion credit facility agreement with covenants, which include restricting the U.S. airline’s ability to pay dividends or repurchase stock before Sept. 30, 2021.The amended facility includes a $1.33 billion three-year facility, $1.25 billion of which has been extended for an additional year to April 2022, and a new $216 million standby letter of credit facility, which matures in April 2022.
The airline industry was especially hard hit as the COVID-19 pandemic led to countries around the world imposing travel restrictions, resulting in airlines slimming down their workforce and bolstering their balance sheet. Last month, Delta Air Lines forecast a 90% plunge in second-quarter revenue and warned it would need to renegotiate its debt agreements to avoid a default next year.
The company now has the option of pledging aircraft, among other assets, as additional collateral, Delta Air Lines said in a filing. (
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