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Spirit to Raise $600 Million in Loyalty-Backed Debt

Spirit will raise $600 million in loyalty program-backed debt. The private placement is secured by the assets and intellectual property of the Miramar, Florida-based carrier’s Free Spirit and Spirit Saver$ Club programs. The three-year debt will carry an interest rate of...

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Latam Has $2.25 Billion For Bankruptcy Exit

Latam Airlines Group priced $2.25 billion in bankruptcy exit financing from a group of lenders last week. The debt includes $450 million in five-year senior secured notes and $700 million in seven-year notes both at a fixed rate of 13.375...

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SAS Gets Bankruptcy Loan

A U.S. bankruptcy court has approved $700 million in debtor-in-possession (DIP) financing for SAS. Funds will come from Apollo Global Management to carry the airline through its Chapter 11 restructuring. SAS has made progress reaching deals with its labor unions...

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Danish Government Backs SAS Cost Cuts

The Danish government has agreed to convert the aid it lent SAS during the pandemic into equity, as well as potentially investing new equity in the airline, as part of the airline's restructuring. Key to that, however, is the carrier...

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Air New Zealand Issues A$550 Million in Notes

Air New Zealand issued A$550 million ($389 million) in medium-term notes on May 26. The fixed-rate debt is split into an A$300 million 4-year tranche and an A$250 million 7-year tranche. Proceeds will be used to redeem NZ$400 million ($258...

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China Eastern Seeks to Raise up to $2.2 Billion

China Eastern Airlines plans to raise up to 15 billion yuan ($2.2 billion) through an equity issue. The carrier will issue up to 5.66 billion new shares on the Shanghai Stock Exchange to certain pre-approved investors. Proceeds will be used...

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Earnings Around the World

Turkish Airlines posted a $161 million net profit on a $512 million operating profit in the first quarter. Revenues increased 10 percent year-over-three-years to $3.1 billion during the period with cargo the highlight; freight revenues doubled to $980 million. Unit...

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Lufthansa Signs $2.2 Billion Revolver

The Lufthansa Group has signed a €2 billion ($2.2 billion) unsecured syndicated revolving credit facility. Chief Financial Officer Remco Steenbergen said the revolver, which replaces €700 million in undrawn bilateral credit lines, will help achieve the group's €6-8 billion liquidity...

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Air New Zealand to Raise $1.5 Billion

Air New Zealand is embarking on a major balance sheet improvement effort just as it's about to resume carrying international travelers. The airline has launched a NZ$2.2 billion ($1.5 billion) recapitalization program split between a NZ$1.2 billion rights offer to...

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Air Canada Eyes EETC Funds

Air Canada plans to pay cash for its deliveries of Boeing 737-8 and 787-9 aircraft over the "near term" in order to de-lever its balance sheet, Chief Financial Officer Amos Kazzaz said at a J.P. Morgan conference last week. However,...

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Aviation Financiers Look Past Volatility

Financiers at the annual ISTAT Americas conference were bullish on the the aviation finance market, even with concerns over the war in Ukraine and elevated oil prices. Most spoke of ample capital looking for a home in the market, whether...

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Icelandair Cancels Pandemic Credit Line

In the latest sign the international travel recovery is firmly underway, Icelandair has cancelled a $120 million credit facility from Íslandsbanki and Landsbanki that was backed by the Icelandic government. The two-year revolver was extended to the airline in September...

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