Wheels Up signs commitment letter with Bank of America for $332M credit facility

Wheels Up (UP) has entered into a commitment letter with Bank of America (BAC) for a new, five-year, up to $332M senior secured revolving credit facility. The company anticipates that the revolving facility will close concurrently with the closing of the GrandView acquisition in the Q4. Wheels Up expects to utilize the revolving facility to fund several actions, including the GrandView acquisition; the redemption of all outstanding equipment notes on the company’s owned aircraft; and general corporate purposes. The financing is also expected to deliver up to $115M of additional cash to the balance sheet of Wheels Up and provides future revolving borrowing availability under certain conditions, with which Wheels Up expects to opportunistically acquire additional Phenom and Challenger aircraft in the future as it completes its fleet modernization plan. Delta Air Lines is expected to provide credit support for the new financing, enhancing Wheels Up’s access to capital and on more attractive terms than would otherwise be available.