Wheels Up Experience Inc. Closes Revolving Equipment Notes Facility with Bank of America

On November 13, 2024, Wheels Up Experience Inc. (NYSE: UP) finalized a significant financing transaction with Bank of America for a Revolving Equipment Notes Facility. This initiative, overseen by Wheels Up Partners LLC, an indirect subsidiary of Wheels Up Experience Inc., involved the completion of a financing deal with Bank of America and the GrandView Asset Acquisition on the Closing Date. The Revolving Equipment Notes Facility will provide funding to support the strategic objectives of the company, including fleet modernization activities.

The financing transaction involved the issuance of Series A-1 equipment notes totaling approximately $331.3 million under the Revolving Equipment Notes Facility. Delta Air Lines provided credit support for this facility, ensuring payment obligations in specified events of default. The maturity date for this five-year facility is November 13, 2029. The Company intends to utilize the net proceeds for general corporate purposes and to execute its fleet modernization strategy.

Additionally, Wheels Up Experience redeemed all outstanding amounts under the 2022 Term Equipment Notes on the same Closing Date. This redemption, totaling approximately $20.0 million, was funded using a combination of the initial proceeds from the Revolving Equipment Notes Facility and funds set aside for the 2022 Term Equipment Notes. As a result, the Company’s obligations under the 2022 Term Equipment Notes were fully satisfied.

Moreover, the Company entered into Amendment No. 2 to Credit Agreement on the Closing Date. This amendment, made in connection with the Revolving Equipment Notes Facility, includes technical adjustments to facilitate the transaction and does not materially impact existing agreements, covenants, or financial terms under the Credit Agreement.

As part of the day’s activities, Wheels Up Experience successfully completed the acquisition of 17 Embraer Phenom 300 and Phenom 300E aircraft, along with maintenance assets and customer programs from GrandView Aviation. This acquisition signals an important step in the Company’s fleet expansion strategy, aimed at enhancing customer offerings and overall operational capabilities.

A press release issued on November 14, 2024, provides comprehensive details on these transactions and the Company’s forward-looking strategies. It underscores the significance of these activities in aligning with Wheels Up’s growth objectives and commitment to enabling premium aviation solutions for its clients.

It is essential to note that this press release may contain forward-looking statements that are subject to risks and uncertainties. These statements are based on current expectations and assumptions and may differ from actual outcomes due to various external factors.

Investor and media contacts for Wheels Up Experience Inc. are available at [email protected] and [email protected], respectively.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Wheels Up Experience’s 8K filing here.

About Wheels Up Experience

Wheels Up Experience Inc provides private aviation services in the United States and internationally. The company offers membership programs consisting of Connect that offers members variable dynamic pricing on a per trip basis and flexibility on their schedule; Core for private flyers; and UP for Business for small and medium enterprise, and large corporate customers for whom it is primary provider of private flights, as well as supplementary solution to their own aircraft operations.