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Transaction Summary: Treasury Loan to Hawaiian Airlines, Inc. (Updated)

Summary

A U.S. Department of the Treasury transaction summary for a loan of up to $622 million to Hawaiian Airlines, Inc., a wholly owned subsidiary of Hawaiian Holdings, Inc., made under section 4003(b)(1) of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. It states Treasury originally agreed to lend up to $420 million and raised the maximum loan amount on October 23, 2020. The loan is secured by the HawaiianMiles loyalty program and certain aircraft, carries an interest rate of LIBOR plus 2.5% and matures on June 28, 2024. The company drew $45 million at close, and the summary lists covenants on employee compensation, stock repurchases, dividends and employment levels.

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Cite this document

“Transaction Summary: Treasury Loan to Hawaiian Airlines, Inc. (Updated).” Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/treas-hawaiian-airlines-updated-transaction-summary-297ce30441/, SHA-256 d419e78fd38b3e5dbe28af030a0ee8b69e6879d96abd3725bb2137a46c1e24d0.

Full text

                                    Transaction Summary

The U.S. Department of the Treasury agreed to make a loan of up to $622 million to Hawaiian
Airlines, Inc. (the Company). Treasury originally agreed to make a loan of up to $420 million to
the Company, and on October 23, 2020, Treasury increased the maximum loan amount to $622
million. The Company is a wholly owned subsidiary of Hawaiian Holdings, Inc. and one of the
largest domestic airlines in the United States. The Company had approximately 7,400 U.S.
employees in March 2020 and carried more than 11 million passengers in 2019.

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 the Company’s HawaiianMiles loyalty
program as well as certain aircraft. The loan has an interest rate equal to LIBOR plus 2.5% and
matures on June 28, 2024. The Company elected to draw $45 million at close and may draw the
remaining loan funds in multiple draws through May 28, 2021. 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 will receive warrants to purchase common stock equal to 10% of the total loan amount
drawn.

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TREAS-Hawaiian-Airlines-Updated-Transaction-Summary.pdf
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