Alaska Air Bolsters Finances with New Credit and Loyalty Assets
Company Announcements

Alaska Air Bolsters Finances with New Credit and Loyalty Assets

Alaska Air ( (ALK) ) has shared an update.

Alaska Air Group, Inc. has secured a new Revolving Credit Facility with an initial commitment of $850 million, which can be expanded up to $1.25 billion. This facility, guaranteed by Alaska Airlines and Hawaiian Airlines, matures in 2029 and is secured by various assets, including international route authorities and airport rights. It features variable interest rates, a borrowing base dependent on asset appraisals, and financial covenants that must be met, including maintaining a specified ratio of assets to debt and a minimum cash reserve. The agreement also allows for lien release on collateral if the company achieves investment-grade ratings. Concurrently, the company has terminated a prior credit facility and absorbed Hawaiian’s existing debt post-merger. Additionally, Alaska Air Group announced plans for a $1.5 billion Mileage Plan Financing, secured by its loyalty program assets, to redeem debt and support liquidity.

Find detailed analytics on ALK stock on TipRanks’ Stock Analysis page.

Related Articles
TheFlyUnusually active option classes on open November 11th
TheFlyAlaska Air price target raised to $60 from $55 at BofA
TipRanks Auto-Generated NewsdeskAlaska Air Shows Strong Q3 Results and Growth
Looking for investment ideas? Subscribe to our Smart Investor newsletter for weekly expert stock picks!
Get real-time notifications on news & analysis, curated for your stock watchlist. Download the TipRanks app today! Get the App