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business1d ago
Southwest Airlines Secures $500 Million Aircraft-Backed Term Loan Maturing 2029 With BNP Paribas
- Southwest Airlines secured a $500 million senior secured term loan, drawn in full, maturing in 2029.
- The loan is prepayable at any time and cannot be reborrowed once repaid.
- Interest is based on Term SOFR plus 1.10% or the Alternate Base Rate plus 0.10%.
- The facility is secured by certain aircraft and related assets and includes an up to $500 million incremental feature.
- BNP Paribas serves as administrative and collateral agent for the loan.
- The loan supports Southwest's liquidity and fleet financing flexibility.
- The term loan matures on March 11, 2029.
- The agreement includes potential for an additional $500 million incremental facility.
- The facility is secured by aircraft and related assets.
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