WorldTraveler
Corn Field
- Dec 5, 2003
- 21,709
- 10,662
- Banned
- #1
Delta has essentially refinanced its exit bankruptcy financing that comes due next year (2012) and in 2014, pushing it back to 2016 and 2017 and cutting its required debt maturities next year in half.
http://www.istockanalyst.com/business/news/5046947/fitch-rates-delta-s-secured-bank-credit-facilities-bb-rr1
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How Delta's refinancing of this debt fits w/ all of its debt will, along w/ other airlines, become clear in the coming days and weeks as first quarter earnings calls begin.
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It is insightful to look at all of the potential needs for cash as well as sources of cash to determine how well DL and other carriers are positioned to ride out what could be a bumpy 2011 and 2012.
.
According to each of their 2010 annual reports/SEC 10K filings, AA, DL, and the combined UA/CO each have about $3B in debt payments due in 2011 and similar amounts in 2012...as of Dec 31, 2010. US has about $400M due but that includes capital lease payments which are reported separately for the other carriers.
Ratings agencies have already noted that AMR is issuing $800-900M in new debt this year for future maturities which will undoubtedly be used to reduce its required debt payments for this year.
.
According to Yahoo Finance and SEC filings, AMR has about 4.5B in cash, DL has about 3.6, and UA/CO has about 8.7. US has 1.9B
.
AA and US do not appear to have any undrawn lines of credit, DL has $1.6B, and UAL has a couple hundred million dollars...
.
AA and DL do not appear to have any credit card holdbacks, UA/CO has apparently a small amount ($50M based on current cash), and US has holdbacks... not known the amount.
.
AA has 900M in aircraft commitments this year and 1.4B next year, DL has virtually no aircraft commitments, UAL/CO has 900M this year and 2.1B in 2012, and US has approximately 600M in each of the next two years.
.
The clear goal this year for all carriers will be to reduce the requirements for cash over the next two years.. .which will likely be the minimum length of time the runup in fuel prices will impact US airline finances.
http://www.istockanalyst.com/business/news/5046947/fitch-rates-delta-s-secured-bank-credit-facilities-bb-rr1
.
How Delta's refinancing of this debt fits w/ all of its debt will, along w/ other airlines, become clear in the coming days and weeks as first quarter earnings calls begin.
.
It is insightful to look at all of the potential needs for cash as well as sources of cash to determine how well DL and other carriers are positioned to ride out what could be a bumpy 2011 and 2012.
.
According to each of their 2010 annual reports/SEC 10K filings, AA, DL, and the combined UA/CO each have about $3B in debt payments due in 2011 and similar amounts in 2012...as of Dec 31, 2010. US has about $400M due but that includes capital lease payments which are reported separately for the other carriers.
Ratings agencies have already noted that AMR is issuing $800-900M in new debt this year for future maturities which will undoubtedly be used to reduce its required debt payments for this year.
.
According to Yahoo Finance and SEC filings, AMR has about 4.5B in cash, DL has about 3.6, and UA/CO has about 8.7. US has 1.9B
.
AA and US do not appear to have any undrawn lines of credit, DL has $1.6B, and UAL has a couple hundred million dollars...
.
AA and DL do not appear to have any credit card holdbacks, UA/CO has apparently a small amount ($50M based on current cash), and US has holdbacks... not known the amount.
.
AA has 900M in aircraft commitments this year and 1.4B next year, DL has virtually no aircraft commitments, UAL/CO has 900M this year and 2.1B in 2012, and US has approximately 600M in each of the next two years.
.
The clear goal this year for all carriers will be to reduce the requirements for cash over the next two years.. .which will likely be the minimum length of time the runup in fuel prices will impact US airline finances.
