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Delta revises agreements with lenders.

AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD

Delta Air Lines Inc has reached revised financing agreements with two key lenders, said the carrier on Wednesday (1 June) in a Securities and Exchange Commission filing.

General Electric Co's finance division has agreed to reduce the levels of earnings before interest, taxes, depreciation, amortization and aircraft rent (EBITDAR) required in the credit agreement. According to Delta the change was necessary because of high fuel prices. However, GE is now requiring that Delta have at least USD1bn in unrestricted cash at all times, while the prior terms allowed Delta to maintain only USD750m after 31 October.

Delta also said it has signed a similar revised agreement with American Express Co's travel services division.

Delta could drop its unrestricted cash reserves to USD1.47bn by the end of June and USD466m by year's end, estimated an analyst at Calyon Securities quoted by Associated Press. The end-of-the-year projection would put Delta well below the revised financing agreement terms with GE and American Express.

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Title Annotation:Delta Air Lines Inc.
Publication:Airline Industry Information
Article Type:Brief Article
Geographic Code:1USA
Date:Jun 2, 2005
Words:181
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