U.S. Department of the Treasury: Elite Airways, "Transaction Summary"

Summary

This Treasury transaction summary covers a loan totaling $2,630,274 to Elite Airways, LLC, a passenger air carrier with approximately 110 U.S. employees in March 2020. Treasury made the loan under section 4003(b)(1) of the CARES Act, secured by ground support equipment and spare parts. It has an annual interest rate equal to LIBOR plus 3.5% and matures on November 7, 2025; Treasury funded the full loan amount on December 1, 2020. The loan constitutes senior indebtedness of the Company, with 3% payment-in-kind annual interest to Treasury under section 4003(d).

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Cite this document

“U.S. Department of the Treasury: Elite Airways, ‘Transaction Summary.’” Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/u-s-department-of-the-treasury-elite-airways-transaction-summary-597023106f/, SHA-256 8bc13cdd37674fc8c55ccea43511215d407754aabe3bc4f78188c7e7ac752d84.

Full text

                                   Transaction Summary

The U.S. Department of the Treasury agreed to make a loan totaling $2,630,274 to Elite
Airways, LLC (the Company), a passenger air carrier with approximately 110 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 ground support equipment and spare
parts. It has an annual interest rate equal to LIBOR plus 3.5% and matures on November 7,
2025. Treasury funded the full loan amount on December 1, 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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Our copy: TREAS-Elite-Airways-Transaction-Summary.pdf
Original: home.treasury.gov