I could have sworn this got posted somewhere, but I will be damned if I can find it, if it already has, please feel free to report the post and have the mods delete it.http://otp.investis.com/generic/sec/sec ... 3&Type=PDF
This is public record, so I have copied it here, to save searching, but also wanted a link to prove the source.
On March 13, 2020, JetBlue Airways Corporation (“JetBlue”) entered into a Delayed Draw Term Loan Credit Agreement (the
“Credit Agreement”), among JetBlue, as borrower, the subsidiaries of JetBlue party thereto from time to time, as guarantors, the lenders party
thereto from time to time and Morgan Stanley Senior Funding Inc., as administrative agent (the “Agent”). The Credit Agreement provides for
a term loan facility of up to $1,000,000,000 (the “Term Loan Facility”).
On March 16, 2020, JetBlue borrowed the full amount of the Term Loan Facility (the “Term Loan”), the proceeds of which will be[/b]
used to pay certain transaction fees and expenses, and for general corporate purposes of the Company. Amortization payments equal to 0.25%
of the outstanding principal of the Term Loan will be due on the last day of each quarter during the term. The remaining outstanding principal
amount of the Term Loan must be repaid in a single installment on the maturity date on March 15, 2021
. JetBlue may prepay all or a portion
of the Term Loan from time to time, at par plus accrued and unpaid interest.
Borrowings under the Credit Agreement bear interest at a variable rate equal to the London interbank offering rate, known as LIBOR
(but not less than 1% per annum), plus a margin of 1.75% per annum, or at JetBlue’s election, another rate based on certain market interest
The obligations of JetBlue under the Credit Agreement are secured by liens on certain aircraft and spare engines of JetBlue (the
“Collateral”). The Credit Agreement includes provisions that require the Company to maintain unrestricted cash and cash equivalents and
unused commitments available under all revolving credit facilities (including the Term Loan Facility) aggregating not less than $550 million.
They are putting up 24 aircraft all 321's and including all the NEO's as far as I can tell and 37 spare engines. Oldest (at least in registration numbering terms) is N946JB..
So effectively they just borrowed $1bn, at Libor+1.75%, which is pretty damn low and have a year to pay it off. According to their 10-K for 2019, they had 959m in cash and cash equivalents and they had $750m in undrawn credit lines $550m with Citibank and $200m with Morgan Stanley.
What I can't tell at this point is if this $1bn is in addition to that, I suspect it might be.
Basically if the above is correct, cash is $959+$372 +$1,000 approx 28% of 2019 revenue, which is compared to 16% as stated in the 10K. the $750K remains undrawn, although who knows if any of that has happened since the end of the year. If you include that as well, they have cash lines of $3bn or around 37% of their revenue.
We shall see how fast this gets burned, they are going to need it.
That feeling when you sit at the end of a runway, brakes are released and the raw power takes over. Now that is a thing of beauty and it never gets old.