CHICAGO (Reuters) – U.S. Treasury officials have asked airlines seeking money from a $25 billion fund for payroll support to provide detailed information on their capital structure, liquidity and collateral, people briefed on the matter said.
Below is a list of the details Treasury has requested, as explained to Reuters by one of the people:
CAPITAL STRUCTURE
– Breakout of all secured and unsecured debt
– An overview of any financing completed in 2020, including applicable terms
– A detailed schedule of debt maturity in 2020 and any amortization
– Any prohibitions on issuing any unsecured or secured debt contained in existing agreements or indentures
– Permitted debt and permitted lien baskets in dollar terms for incremental secured and unsecured indebtedness
– Collateral currently used to support outstanding indebtedness
LIQUIDITY
– Current liquidity including cash, marketable securities, revolver ability and delayed draw term loan availability
– Expectations on when they will run out of liquidity
– Assumptions around daily cash burn, cost cuts, debt maturity, interest expense and amortization
– Best estimate for projected wages and benefits for April 1 to Sept. 30 given current operating assumptions for that period
COLLATERAL
– Overview of loyalty program
– Details on whether the loyalty program is encumbered or unencumbered
– Estimated value of the loyalty program
– Historical cash flow of the loyalty program
– An overview of all unencumbered aircraft, engines and spare parts
– The estimated value of the unencumbered assets broken down by asset class
– The estimated available financing of unencumbered assets
– An overview of any additional unencumbered collateral
Reporting by Tracy Rucinski; Editing by Steve Orlofsky
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