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

Summary

A Treasury transaction summary for a loan totaling $45 million to Sun Country, Inc., a wholly owned subsidiary of Sun Country Holdings, Inc., made under section 4003(b)(1) of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The summary describes the Company as a passenger air carrier with approximately 1,630 U.S. employees in March 2020. The loan is secured by the Sun Country Rewards loyalty program, carries interest at LIBOR plus 3.5%, matures on October 24, 2025 and was funded in full at close. Treasury will also receive 3% payment-in-kind annual interest under section 4003(d), and the agreement includes CARES Act covenants on employee compensation, stock repurchases, dividends and reductions in employment levels.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Cite this document

“U.S. Department of the Treasury: Sun Country, ‘Transaction Summary.’” Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/u-s-department-of-the-treasury-sun-country-transaction-summary-c251501230/, SHA-256 e9a65263177294deace05c97b865f1af0327b9345540b70e43d70d1cf828fa23.

Full text

                                    Transaction Summary

The U.S. Department of the Treasury agreed to make a loan totaling $45 million to Sun Country,
Inc. (the Company), a wholly owned subsidiary of Sun Country Holdings, Inc. The Company is
a passenger air carrier with approximately 1,630 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 the Company’s Sun Country Rewards
loyalty program. The loan has an annual interest rate equal to LIBOR plus 3.5% and matures on
October 24, 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.

File and source

File: TREAS-Sun-Country-Transaction-Summary.pdf
Size: 9,141 bytes
SHA-256: e9a65263177294deace05c97b865f1af0327b9345540b70e43d70d1cf828fa23
Our copy: TREAS-Sun-Country-Transaction-Summary.pdf
Original: home.treasury.gov