For Immediate Release Friday September 23, 2005
For More
Information, Please Contact:
ISDA PUBLISHES DELTA & NORTHWEST CDS INDEX
PROTOCOL
The
2005
Delta & Northwest CDS Index Protocol offers market participants an
efficient way to address the settlement issues relating to trades on credit
derivative indices that include Delta Air Lines, Inc. and Northwest Airlines,
Inc. The Protocol enables institutions to amend their documentation for such
index trades from physical to cash settlement and to participate in an auction,
scheduled for October 11, 2005, which will determine the final price for certain
Delta Air Lines, Inc. and Northwest Airlines, Inc. bonds. Markit
Partners and Creditex will administer the auction.
“ISDA has been able to redeploy the highly
successful CDS protocol mechanism developed and used to settle index trades
referencing Collins and Aikman bonds,” said Robert
Pickel, Chief Executive Officer and Executive Director, ISDA. “While numerous Delta and Northwest
reference obligations are available for physical settlement, the principal
aim of today's protocol is to facilitate a swift, orderly and efficient cash
settlement process.”
With the 2005 Delta &
Northwest CDS Index Protocol, ISDA enables parties to amend credit derivative
index documents on a multilateral basis rather than through one-on-one
negotiations between all counterparties.
In addition to greater efficiency, time and cost savings, using the
Protocol will provide enhanced legal certainty.
The Protocol is open to
ISDA members and non-members alike. The
adherence period for the Protocol is September 23 and September 30, 2005. The
text of the Protocol and form of adherence letter, guidance on the mechanics of
the Protocol, answers to frequently asked questions and details on adherents,
are all available at www.isda.org. Details on the auction are included in the
Protocol.
The auction will determine
settlement prices for the following list of bonds.
In respect of Delta, the Reference Obligation may be any one of the following:
|
Issuer |
Coupon |
Maturity |
CUSIP |
ISIN |
|
Delta Airlines, Inc. |
7.700% |
15 December 2005 |
247361YE2 |
US247361YE22 |
|
Delta Airlines, Inc. |
10.000% |
15 August 2008 |
247361YT9 |
US247361YT90 |
|
Delta Airlines, Inc |
7.900% |
15 December 2009 |
247361YF9 |
US247361YF96 |
|
Delta Airlines, Inc |
9.000% |
15 May 2016 |
247361AD0 |
US247361AD05 |
|
Delta Airlines, Inc |
9.750% |
15 May 2021 |
247361WH7 |
US247361WH70 |
|
Delta Airlines, Inc |
8.000% |
03 June 2023 |
247361YN2 |
US247361YN21 |
|
Delta Airlines, Inc |
2.875% |
18 February 2024 |
247361YS1 |
US247361YS18 |
|
Delta Airlines, Inc |
8.300% |
15 December 2029 |
247361YG7 |
US247361YG79 |
In respect of Northwest, the Reference Obligation may be any one of the following:
|
Issuer |
Coupon |
Maturity |
CUSIP |
ISIN |
|
Northwest Airlines, Inc. |
8.875% |
01 June 2006 |
667281AP4 |
US667281AP49 |
|
Northwest Airlines, Inc. |
8.700% |
15 March 2007 |
667281AJ8 |
US667281AJ88 |
|
Northwest Airlines, Inc |
9.875% |
15 March 2007 |
667280AA9 |
US667280AA96 |
|
Northwest Airlines, Inc |
7.875% |
15 March 2008 |
667281AM1 |
US667281AM18 |
|
Northwest Airlines, Inc |
10.000% |
01 February 2009 |
667280AF8 |
US667280AF83 |
ISDA
is the global trade association representing leading participants in the
privately negotiated derivatives industry. ISDA was chartered in 1985, and
today has more than 650 member institutions from 47 countries on six
continents. These members include most of the world's major institutions that
deal in privately negotiated derivatives, as well as many of the businesses,
governmental entities and other end users that rely on over-the-counter
derivatives to manage efficiently the financial market risks inherent in their
core economic activities. Information about ISDA and its activities is
available on the Association's web site: www.isda.org.