On July 30, 2003, Standard & Poor's Ratings Services assigned its 'B' rating to Delta Air Lines Inc.'s (BB-/Negative/--) proposed $683.5 million 10% senior notes due 2008, being offered in exchange for two outstanding senior note issues. The rating on the new notes, which are senior unsecured obligations, is two notches lower than Delta's corporate credit rating because the large amount of secured debt and leases in the company's capital structure places senior unsecured creditors in an effectively subordinated position. The notes, issued under Rule 144a, with registration rights, are being offered in exchange for the $300 million 6.65% medium-term notes, series C, due 2004 (along with cash) and for the $500 million 7.7% senior notes due 2005; Delta is...
Companies mentioned in this report are:
- Delta Air Lines Inc.
Action: New Rating
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