Frontier Group Holdings, Inc. (ULCC) enters new credit lines

On September 26, 2024, Frontier Group Holdings, Inc. (NASDAQ: ULCC), via wholly owned subsidiaries, entered into a series of transactions designed to provide it with a revolving line of credit available for general corporate purposes as well as increased capacity for financing facilities intended to fund aircraft pre-delivery payments (“PDPs”) due to Airbus S.A.S. (“Airbus”).
In particular, the Company entered into a Revolving Loan Facility (as defined below), which provided $205 million of commitments secured by the Company’s loyalty program and brand-related assets, and which, subject to certain terms, conditions and additional lending commitments, may be increased to $500 million. The Revolving Loan Facility also permits the Company to enter into additional indebtedness secured by the Company’s loyalty program and brand-related assets, which may provide for significant incremental liquidity as desired, to the extent such indebtedness is pari passu to that of the Revolving Loan Facility.
Additionally, the Company entered into new PDP financing facilities and amended its existing PDP Financing Facility (as defined below), which increased the Company’s total PDP financing capacity to approximately $475 million, in the aggregate, relating to aircraft on order from Airbus that are currently scheduled for delivery through 2027 and certain deliveries scheduled in 2028. The Company’s previous PDP facility provided up to $365 million of PDP financing for aircraft deliveries through 2026.

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