Delta will use frequent-flyer program to back $6.5 billion in debt

Delta Air Lines said Monday that it will borrow $6.5 billion backed by its frequent-flyer program, the third airline to tap its loyalty platform to shore up liquidity during the coronavirus crisis. The airline plans to sell senior secured notes and enter into a new term loan, both backed by its SkyMiles program. SkyMiles will lend the net proceeds of the bond offering to Delta, although a portion will go to a reserve account. Delta said last week that it had about $16 billion in cash at the end of June and that it was burning around $27 million a day.

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