© Reuters. FILE PHOTO: Delta Air Lines passenger planes parked in Birmingham

(Reuters) – Delta Air Lines Inc (N:) said on Thursday it has amended its $2.65 billion credit facility agreement with covenants, which include restricting the U.S. airline’s ability to pay dividends or repurchase stock before Sept. 30, 2021.

The amendment also requires the company to maintain a minimum liquidity of $2 billion.

The amended facility includes a $1.33 billion three-year facility, $1.25 billion of which has been extended for an additional year to April 2022, and a new $216 million standby letter of credit facility, which matures in April 2022.

The airline industry was especially hard hit as the COVID-19 pandemic led to countries around the world imposing travel restrictions, resulting in airlines slimming down their workforce and bolstering their balance sheet.

Last month, Delta Air Lines forecast a 90% plunge in second-quarter revenue and warned it would need to renegotiate its debt agreements to avoid a default next year.

The company now has the option of pledging aircraft, among other assets, as additional collateral, Delta Air Lines said in a filing. (https://

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2020-07-02