Monday we wrote about the additional financial heft US Airways had put in place as it was announced Morgan Stanley had been added to its merger finance team. Today, as expected, that increased financial heft manifested itself in a “sweetened” deal for Delta Air Lines.

US Airways this morning raised its bid for Delta from $4 billion and 78 million shares to $5 billion and 89.5 million shares. Terms of the deal? The new offer will expire on Feb 1 unless US Airways receives creditor support for the commencement of due diligence, there is an HSR filing, and the currently scheduled Feb. 7 hearing on Delta’s disclosure statement is postponed.

Gary Chase, analyst at Lehman Brothers wrote this morning, the “new deal terms [are] very much in line with current bond prices which had advanced well beyond initial LCC deal terms. Offer value is $10.2 billion based on last night’s close to a comparable Delta stand-alone valuation, in our view, of $8-9.5 billion.”

Ticker: LCC:NYSE