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

Summary

A Treasury transaction summary for a loan of up to $1.948 billion to JetBlue Airways Corporation under section 4003(b)(1) of the CARES Act. Treasury originally agreed to lend up to $1.14 billion and increased the maximum loan amount on November 3, 2020. The Company had approximately 23,000 U.S. employees in March 2020, and the loan is secured by the Company's TrueBlue loyalty program, certain aircraft, and engines. The loan bears interest at LIBOR plus 2.75% and matures on September 29, 2025; the Company drew $115 million at close and may make further draws through May 28, 2021. Treasury will receive warrants to purchase common stock equal to 10% of the total loan amount drawn.

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Cite this document

“U.S. Department of the Treasury: JetBlue Airways, ‘Transaction Summary.’” Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/u-s-department-of-the-treasury-jetblue-airways-transaction-summary-ddee20e6a5/, SHA-256 ec448ec59f8c1012eb58f435d12161615076e1ecaed21cc6c60e596971ade2d7.

Full text

                                    Transaction Summary

The U.S. Department of the Treasury agreed to make a loan of up to $1.948 billion to JetBlue
Airways Corporation (the Company), one of the largest domestic airlines in the United States.
Treasury originally agreed to make a loan of up to $1.14 billion to the Company, and on
November 3, 2020, Treasury increased the maximum loan amount to $1.948 billion. The
Company had approximately 23,000 U.S. employees in March 2020 and carried more than 42
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 TrueBlue loyalty
program, certain aircraft, and engines. The loan has an interest rate equal to LIBOR plus 2.75%
and matures on September 29, 2025. The Company elected to draw $115 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-JetBlue-Airways-Transaction-Summary.pdf
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home.treasury.gov
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