Delta prints before airline sell-off

摘要

DELTA AIR LINES returned to the bond market on Wednesday to take advantage of strong primary conditions as it continues to shore up its liquidity position. The airline priced US$1.25bn of five-year unsecured notes at 7.375%, after tightening from initial price thoughts of 8% and guidance of the 7.50% area. But the bonds dipped in the secondary market on Thursday amid a resurgence of concerns over the state of the economy and the extent of the Covid-19 pandemic, and as bond investors took down some profits after a long rally. The 7.375% 2026 unsecured notes dropped to 97.75 to yield 7.80% in secondary trading, having priced at 99.986 on Wednesday. "Airlines in general started to sell off (on Wednesday) while Delta was printing the new deal, and it falls squarely into the camp of things that are going to dip on a day like today," said one high-yield bond trader. "That new issue has to reprice with the market."