Mesa Air announces amendment to loan agreement

Mesa Air (MESA) Group entered into an Amendment to its Loan and Guarantee Agreement, dated as of October 30, 2020, among the Company, Mesa Airlines, the Guarantors party thereto from time to time, Jefferies Capital Services, and The Bank of New York Mellon as Administrative Agent and Collateral Agent. Under the terms of the Amendment, Jefferies agreed to: extend the Maturity Date of the Loan Agreement from October 30, 2025 to November 28, 2025, subject to the Company’s further right to extend the Maturity Date by 30 days by providing notice to the Administrative Agent by no later than November 27, 2025; reduce the interest rate under the Loan Agreement to zero percent for a period of 90 days from the date of the Amendment; waive certain restrictions in the Loan Agreement and the collateral coverage ratio and minimum liquidity tests through the Maturity Date; and subject to the payment in full of the obligations under the Loan Agreement on the Maturity Date, reduce the principal amount of the obligations under the Loan Agreement by $12.3M. In connection with the Amendment, Mesa Airlines deposited cash in a collateral account controlled by Jefferies and agreed to pledge an aircraft engine, each as collateral for the obligations under the Loan Agreement.