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

Summary

Treasury's transaction summary for a $1.8 million loan to Legacy Airways, LLC, described as a cargo air carrier with approximately 19 U.S. employees in March 2020. The loan was made under section 4003(b)(2) of the CARES Act, is unsecured, carries an annual interest rate of LIBOR plus 5.5%, and matures on October 20, 2025. Treasury funded the full loan amount at close. The summary states that the loan constitutes senior indebtedness of the Company and that Treasury will also receive 3% payment-in-kind annual interest.

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“U.S. Department of the Treasury: Legacy Airways, ‘Transaction Summary.’” Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/u-s-department-of-the-treasury-legacy-airways-transaction-summary-7d642f9b85/, SHA-256 be8ce7686015b5aa515318ac54b90644ccc719386771bfa54086aaea91b2f468.

Full text

                                     Transaction Summary

The U.S. Department of the Treasury agreed to make a loan totaling $1.8 million to Legacy
Airways, LLC, (the Company), a cargo air carrier with approximately 19 U.S. employees in
March 2020.

Treasury made the loan pursuant to section 4003(b)(2) of the Coronavirus Aid, Relief, and
Economic Security (CARES) Act. The loan is unsecured. It has an annual interest rate equal to
LIBOR plus 5.5% and matures on October 20, 2025. Treasury funded the full loan amount at
close. 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 also receive 3% payment-in-kind annual interest on the loan in
accordance with section 4003(d) of the CARES Act.

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TREAS-Legacy-Airways-Transaction-Summary.pdf
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TREAS-Legacy-Airways-Transaction-Summary.pdf
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