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

Summary

A U.S. Department of the Treasury transaction summary for a loan of up to $725 million to SkyWest Airlines, Inc., a wholly owned subsidiary of SkyWest, 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 $573 million and increased the maximum loan amount on October 28, 2020. The loan is secured by certain engines, airframes and rotable parts, carries an interest rate of LIBOR plus 3.0% and matures on September 29, 2025. SkyWest Airlines drew $60 million at close and may draw the remainder through May 28, 2021, with Treasury receiving warrants equal to 10% of the total loan amount drawn.

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Cite this document

“Transaction Summary: Treasury Loan to SkyWest Airlines, Inc. (Updated).” Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/treas-skywest-airlines-updated-transaction-summary-726b037f57/, SHA-256 4f17fa86c83a66884f9c4b93c6be0b1da587e44c58899c0a9a3c28f64857bb71.

Full text

                                    Transaction Summary

The U.S. Department of the Treasury agreed to make a loan of up to $725 million to SkyWest
Airlines, Inc. (the Company). Treasury originally agreed to make a loan of up to $573 million to
the Company, and on October 28, 2020, Treasury increased the maximum loan amount to $725
million. The Company is a wholly owned subsidiary of SkyWest, Inc., and one of the largest
domestic airlines in the United States. The Company had approximately 15,000 U.S. employees
in March 2020 and carried more than 35 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 certain engines, airframes, and rotable
parts. The loan has an interest rate equal to LIBOR plus 3.0% and matures on September 29,
2025. The Company elected to draw $60 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.

File and source

File: TREAS-SkyWest-Airlines-Updated-Transaction-Summary.pdf
Size: 81,222 bytes
SHA-256: 4f17fa86c83a66884f9c4b93c6be0b1da587e44c58899c0a9a3c28f64857bb71
Our copy: TREAS-SkyWest-Airlines-Updated-Transaction-Summary.pdf
Original: home.treasury.gov