Delta pledges landing slot collateral while Norwegian shows difficulty in scoring its value

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By Owen Sanderson
27 Apr 2020

Delta Air Lines has pledged landing slots at New York's JFK and LaGuardia airports and London's Heathrow to back a new $3bn bond and loan package. But the restructuring plan of Norwegian Air Shuttle shows how hard it can be for bondholders to benefit from this kind of ‘soft’ collateral.

Delta announced a $3bn senior secured bond and loan package last week, pledging “a diverse pool of slots, gates and routes collateral comprised of domestic slots at New York-JFK, New York-LaGuardia and Reagan National Airport, slots at Heathrow, London routes, other European and Latin American routes” to lenders.

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