Mesa Air closes five-year term loan

Lauren Eldershaw
By Lauren Eldershaw February 5, 2019 15:34

Mesa Air closes five-year term loan

On January 29, 2019 Mesa Air Group closed a $91.2 million five-year term loan at LIBOR +3.1%. The proceeds were used to pay down existing debt at LIBOR +7.25% plus yield enhancement of 1.5%.

The term loan has a term of five years, with principal and interest payments due monthly over the term of the loan in accordance with an amortisation schedule. The facility refinances a spare engine facility. The obligations under the Term Loan are secured by a first priority lien on 27 aircraft engines (21 used engines securing the obligations under the Spare Engine Facility and the six new and used engines acquired by the company in 2018) and related collateral, including engine warranties and proceeds.

CIT Bank was administrative agent and co-lead arranger, Norddeutsche Landesbank Girozentrale, was a lender and co-lead arranger, UMB Bank was security trustee and mortgagee.

Also in January, Mesa Air signed a term sheet with GECAS for the purchase of 10 leased CRJ-700 aircraft currently operating at United. Upon completion of the transaction, Mesa Air will have reduced the number of leased aircraft with third parties to 18.

Lauren Eldershaw
By Lauren Eldershaw February 5, 2019 15:34