Delta Airlines 2015 Annual Report Download - page 81
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2015-1 EETC
Thedetailsofthe2015-1EETC,whichissecuredby15aircraft,areshowninthetablebelow:
(inmillions) TotalPrincipal FixedInterestRate IssuanceDate FinalMaturityDate
2015-1ClassAACertificates $ 313 3.625% August2015 July2027
2015-1ClassACertificates 69 3.875% August2015 July2027
2015-1ClassBCertificates 118 4.250% August2015 July2023
Total $ 500
Key Financial Covenants
2015CreditFacilities.Ourobligationsunderthe2015CreditFacilitiesaresecuredbyliensoncertainofourandtheGuarantors’assets,includingaccounts
receivable,aircraft,spareengines,non-Pacificinternationalroutes,domesticslotsandcertaininvestmentproperty.Theseassetsalsosecure$187millionofcertain
fuelhedgingobligationsonaparipassubasis(i.e.,onequalpriority)withtheRevolvingCreditFacilityandtheTermLoanFacility.The2015CreditFacilities
includeaffirmative,negativeandfinancialcovenantsthatmayrestrictourabilityto,amongotherthings,makeinvestments,sellorotherwisedisposeofassetsif
notincompliancewiththecollateralcoverageratiotests,paydividendsorrepurchasestock.Thesecovenantsrequireustomaintain:
Minimumunrestrictedliquidity
Unrestrictedcash,permittedinvestmentsandundrawnrevolvingcreditfacilities $2.0billion
Minimumcollateralcoverageratio(1) 1.60:1
(1) Definedastheratioof(a)certainofthecollateralthatmeetspecifiedeligibilitystandardsto(b)thesumoftheaggregateoutstandingobligationsunderthe2015CreditFacilitiesandcertain
otherobligations.
Underthe2015CreditFacilities,iftheMinimumCollateralCoverageRatioisnotmaintained,wemusteitherprovideadditionalcollateraltosecureour
obligations,orwemustreducethesecuredobligationsunderthefacilitiesbyanamountnecessarytomaintaincompliancewiththecollateralcoverageratio.The
2015CreditFacilitiescontaineventsofdefaultcustomaryforsimilarfinancings,includingcross-defaultstoothermaterialindebtednessandcertainchangeof
controlevents.Upontheoccurrenceofaneventofdefault,theoutstandingobligationsunderthe2015CreditFacilitiesmaybeacceleratedandbecomedueand
payableimmediately.
PacificFacilities.OurobligationsunderthePacificFacilitiesaresecuredbyafirstlienonourPacificrouteauthoritiesandcertainrelatedassets.ThePacific
Facilitiesincludeaffirmative,negativeandfinancialcovenantsthatcouldrestrictourabilityto,amongotherthings,makeinvestments,sellorotherwisedisposeof
collateralifwearenotincompliancewiththecollateralcoverageratiotestsdescribedbelow,paydividendsorrepurchasestock.
Minimumfixedchargecoverageratio(1) 1.20:1
Minimumunrestrictedliquidity
Unrestrictedcash,permittedinvestmentsandundrawnrevolvingcreditfacilities $2.0billion
Minimumcollateralcoverageratio(2) 1.60:1
(1) Definedastheratioof(a)earningsbeforeinterest,taxes,depreciation,amortizationandaircraftrentandotheradjustmentstonetincometo(b)thesumofgrosscashinterestexpense
(includingtheinterestportionofourcapitalizedleaseobligations)andcashaircraftrentexpense,forthe12-monthperiodendingasofthelastdayofeachfiscalquarter.
(2) Definedastheratioof(a)certainofthecollateralthatmeetspecifiedeligibilitystandardsto(b)thesumoftheaggregateoutstandingobligationsandcertainotherobligations.
WewereincompliancewiththecovenantsonourfinancingagreementsatDecember31,2015.
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