Republic Airways Loan: Transaction Summary (Treasury)

Summary

A Treasury Department transaction summary for a CARES Act loan to Republic Airways, Inc. It states that Treasury agreed to make a loan of $58 million, having originally agreed to up to $77 million, and that the company elected to draw $58 million on December 10, 2020. It describes the company as a regional passenger air carrier with approximately 6,700 U.S. employees in March 2020 and says the loan was made under section 4003(b)(1) of the CARES Act. The loan is secured by spare parts and tooling inventory, carries interest at LIBOR plus 3.5% and matures on November 6, 2025. The summary says the agreement includes covenants on employee compensation, stock repurchases, dividends and employment levels, and that Treasury received warrants for 10% of the total loan amount drawn.

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Cite this document

“Republic Airways Loan: Transaction Summary (Treasury).” Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/republic-airways-loan-transaction-summary-treasury-d63e2b46a2/, SHA-256 5923a6b266c2b424e97ade495f2a27b831c4ef262d1b73511680f202c26941c4.

Full text

                                   Transaction Summary

The U.S. Department of the Treasury agreed to make a loan of $58 million to Republic Airways,
Inc. (the Company). Treasury originally agreed to make a loan of up to $77 million to the
Company, and the Company elected to draw a total of $58 million. The Company is a regional
passenger air carrier with approximately 6,700 U.S. employees in March 2020.

Treasury made the loan pursuant to section 4003(b)(1) of the Coronavirus Aid, Relief, and
Economic Security (CARES) Act. The loan is secured by spare parts and tooling inventory.
This loan has an interest rate equal to LIBOR plus 3.5% and matures on November 6, 2025. The
Company elected to draw a total of $58 million on December 10, 2020. The loan proceeds will
be used to provide liquidity to continue the Company’s operations. The transaction agreement
includes covenants by the Company to comply with certain restrictions on employee
compensation, stock repurchases, dividends, and reductions in employment levels, as required by
the CARES Act. Treasury received warrants to purchase common stock equal to 10% of the
total loan amount drawn.

File and source

File: TREAS-Republic-Airlines-Transaction-Summary.pdf
Size: 81,081 bytes
SHA-256: 5923a6b266c2b424e97ade495f2a27b831c4ef262d1b73511680f202c26941c4
Our copy: TREAS-Republic-Airlines-Transaction-Summary.pdf
Original: home.treasury.gov