U.S. Department of the Treasury: Caribbean Sun, "Transaction Summary"

Summary

A U.S. Department of the Treasury transaction summary for a loan of $6,768,749 to Caribbean Sun Airlines, Inc., a passenger air carrier with approximately 173 U.S. employees in March 2020. Treasury originally agreed to lend up to $15 million and, on December 7, 2020, decreased the maximum loan amount to $6,768,749, funding that full amount the same day. The loan was made under section 4003(b)(1) of the CARES Act, is secured by aircraft, engines and rotable spare parts, carries an interest rate of LIBOR plus 3.5% and matures on November 5, 2025. Treasury will receive 3% payment-in-kind annual interest.

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Cite this document

“U.S. Department of the Treasury: Caribbean Sun, ‘Transaction Summary.’” Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/u-s-department-of-the-treasury-caribbean-sun-transaction-summary-7fe3cd8b1f/, SHA-256 a2282a0bd973386876b36b5c8d07932998c281a2a4acc2a22ccafdad4364a8b7.

Full text

                                    Transaction Summary

The U.S. Department of the Treasury agreed to make a loan of $6,768,749 to Caribbean Sun
Airlines, Inc. (the Company). Treasury originally agreed to make a loan of up to $15 million to
the Company, and on December 7, 2020, Treasury decreased the maximum loan amount to
$6,768,749. The Company is a passenger air carrier with approximately 173 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 aircraft, engines, and rotable spare
parts. The loan has an interest rate equal to LIBOR plus 3.5% and matures on November 5,
2025. Treasury funded the full loan amount of $6,768,749 on December 7, 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. The loan constitutes senior indebtedness of the Company, and
Treasury will receive 3% payment-in-kind annual interest on the loan in accordance with section
4003(d) of the CARES Act.

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File: TREAS-Caribbean-Sun-Transaction-Summary.pdf
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SHA-256: a2282a0bd973386876b36b5c8d07932998c281a2a4acc2a22ccafdad4364a8b7
Our copy: TREAS-Caribbean-Sun-Transaction-Summary.pdf
Original: home.treasury.gov