Loan & DebtMay 19, 2026, 04:38 PM
Southwest Airlines Secures $1.0B Incremental Term Loan
AI Summary
Southwest Airlines Co. entered into an Increase Joinder Agreement and First Amendment to its Credit Agreement, securing an additional $1.0 billion in incremental term loans. This increases the aggregate outstanding principal amount of Term Loans under the Amended Credit Agreement to $1.5 billion. The Term Loans mature on March 11, 2029, and are secured by certain aircraft and related assets, with terms substantially similar to the existing loans.
Key Highlights
- Southwest Airlines secured $1.0 billion in First Incremental Term Loans.
- The total aggregate outstanding principal amount of Term Loans is now $1.5 billion.
- The Term Loans and related obligations mature in full on March 11, 2029.
- The original Term Loan Facility was established for $500 million.
- The Amended Credit Agreement allows for up to $1.0 billion in additional uncommitted incremental term loan commitments.
- The Term Loans are secured by certain aircraft and related assets with a minimum collateral coverage ratio.
Price Impact
More from LUV