Global Crossing Airlines closes issuance of additional notes

Global Crossing Airlines announced the closing of the placement of an additional US$5 million of Senior Secured Notes due 2029 with a fund managed by Axar Capital Management LP and its affiliates. These notes are the same series as the US$35 million of Senior Secured Notes due 2029 that were issued on August 2, 2023. The Financing consisted of the sale of US$5 million of Senior Secured Notes and accompanying warrants to purchase the Company’s common stock. The terms of the Notes are the same as the August 2023 Notes, including: A 6-year term and Maturity Date of August 2, 2029; The Notes will bear interest at a fixed rate of 15% per annum and include an upfront fee of 1.75% of the principal payment; The Company will be permitted to prepay all of the Notes as follows beginning on August 2, 2025 subject to a redemption premium; At closing, the Investor will be issued 1,428,736 warrants exercisable into one share of common stock at an exercise price of US$1.00 per share, with such warrants expiring on June 30, 2030; Each of the Company’s material subsidiaries will guarantee the Notes; and The Notes and the related guarantees will be secured by a lien on substantially all of the property and assets of the Company and the guarantors of the Notes. The net proceeds of the Financing will be used to repurchase $4,316,000 principal amount of the August 2023 Notes with the balance expected to be used for general corporate purposes, including the transaction expenses and deposits to expand its current fleet of aircraft. As a result of the Note Repurchase the Company is also acquiring and cancelling 1,233,285 warrants that were originally issued to the holder on August 2, 2023 and that had an exercise of US$1.00 per share.