Delta obtains $500m financing commitment

Delta Air Lines has signed a commitment letter with GE Commercial Finance to provide it $500 million of financing.

Delta Air Lines has signed a commitment letter with GE Commercial Finance to provide it $500 million of financing.

Up to $100 million of the financing will be provided by American Express Travel Related Services Company under a previously announced commitment, the cash-strapped airline said in a statement.

Delta said $300 million of the financing will be in the form of a senior secured revolving credit facility, and $200 million will be in the form of a senior secured term loan.

The $200 million term loan will mature three years from the closing date, and will be payable in 12 equal monthly installments from the second anniversary of the closing date.

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The airline on Thursday narrowly averted bankruptcy after reaching a tentative deal with its pilots' union that will save it $1 billion a year.