Delta Secures $2.5 Billion in Financing

Delta Air Lines Inc., the nation's third-largest carrier, said Tuesday it has obtained a commitment for $2.5 billion in exit financing as part of its plan to emerge from bankruptcy by the middle of this year as a stand-alone company.

The Atlanta-based company said the financing will be led by six financial groups - JPMorgan, Goldman Sachs & Co., Merrill Lynch, Lehman Brothers, UBS and Barclays Capital.

Delta said the financing will be secured by collateral in its existing financing for its operations while in bankruptcy.

The company said the financing is a key ingredient that will help it meet its goal for exiting bankruptcy.

Proceeds from the exit financing will be used by Delta to repay its $2.1 billion in-bankruptcy financing led by GE Capital and American Express, make other payments and increase its cash reserves.

Delta has said it projects it will be worth $9.4 billion to $12 billion when it emerges from bankruptcy.

It still faces a hostile bid by Tempe, Ariz.-based US Airways Group Inc. to buy Delta in a deal that would create the nation's largest carrier.

Delta's official committee of unsecured creditors has not weighed in yet on whether it will support Delta's standalone plan or US Airways' merger plan. US Airways has set a Thursday deadline for the committee to meet certain conditions or the bid will be withdrawn.

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