Wheels Up Experience today announced that it has closed a new investment by Kore Capital and funds managed by Whitebox Advisors LLC on November 15, 2023.
These new investors join Delta Air Lines, Certares Management LLC, Knighthead Capital Management LLC and Cox Enterprises, providing an additional term loan facility in the amount of $40 million under the existing Credit Agreement.
Upon the closing of this new investment, the Credit Facility consists of the Term Loan in the amount of $390 million and the Revolving Credit Facility in the amount of $100 million.
“As discussed on our earnings call last week, we expect our cash balance at the end of the year will be flat to up versus third quarter levels, reflecting a stabilization of deferred revenue and working capital, the absence of the one-time transaction costs, and proceeds received from the additional term loan,” said George Mattson, Wheels Up Chief Executive Officer.
“We are very pleased with the commitment from our new investors and the resources they are providing in addition to their capital.”
In connection with closing the additional term loan, Wheels Up completed the second issuance of shares of common stock to the lenders on November 15, 2023, such that the lenders now hold shares equal to approximately 95% of the company’s outstanding equity on a fully diluted basis as of September 15, 2023, after giving effect to such issuance.