JetBlue secures $350 million revolver

Victoria
By Victoria April 26, 2013 11:41

JetBlue secures $350 million revolver

 

On April 23, 2013, JetBlue closed a $350 million three-year secured revolving credit and letter of credit facility. Citibank is the administrative agent.

“We continue to enhance and optimize our liquidity position through our growing unencumbered asset base and credit facilities, which we believe will be accretive to return on invested capital,” said Mark Powers, JetBlue’s Chief Financial Officer.

 

The facility allows JetBlue to have letters of credit issued up to an aggregate amount of $75 million, in an aggregate amount outstanding at any time of up to $350 million. The facility is undrawn at present. Drawn amounts are priced at LIBOR+ 375bp per annum plus a margin of 275bp per annum.

The facility is secured by liens on certain take-off and landing rights of JetBlue at John F. Kennedy International Airport, Newark Liberty International Airport, LaGuardia Airport and Ronald Reagan Washington National Airport and certain related assets. Covenants in the agreement require JetBlue to maintain unrestricted cash and cash equivalents and unused commitments available under all revolving credit facilities (including the Credit Facility) aggregating not less than $550 million and to maintain a minimum ratio of the borrowing base of the Collateral to outstanding obligations under the Credit Facility of not less than 1.0 to 1.0.

 

Victoria
By Victoria April 26, 2013 11:41
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