Mesa Air Group completes second closing of secured loan facility and receives additional $ 152 million
PHOENIX, Nov. 16, 2020 (GLOBE NEWSWIRE) – Mesa Air Group, Inc. (NASDAQ: MESA) today announced that it has completed a second closing under its five-year loan and guarantee agreement previously disclosed in the framework of the Coronavirus Air, Relief, and the law on economic security (CARES law).
The loan agreement provided for a secured term loan facility of up to $ 200 million. On October 30, 2020, Mesa borrowed $ 43 million under the facility and today entered into a second closing to borrow an additional $ 152 million. These funds may be used for general business needs and operating expenses, to the extent permitted by the CARES Act.
“I would like once again to express my sincere gratitude to everyone involved in making this deal happen. Our people have worked very hard to ensure that Mesa and its employees are prepared to weather this storm, ”said Jonathan Ornstein, President and CEO. “These additional funds will significantly benefit our airline and the communities we serve as we continue to overcome the obstacles created by the pandemic.”
As part of the additional $ 152 million drawn under the facility, Mesa issued warrants to the US Treasury to purchase 3,819,095 common shares, without par value. The warrants have a term of five years from the date of issue, were issued under the warrant agreement and have substantially the same terms as the warrants issued on the initial closing.
About Mesa Air Group, Inc.
Based in Phoenix, Arizona, Mesa Air Group, Inc. is the holding company of Mesa Airlines, a regional airline providing scheduled passenger services to 101 cities in 39 states, the District of Columbia, Canada and Mexico. As of October 31, 2020, Mesa operated a fleet of 146 aircraft with approximately 342 daily departures and 3,200 employees. Mesa operates all of its flights as American Eagle, United Express, or DHL Express under the terms of capacity purchase agreements with American Airlines, Inc., United Airlines, Inc. and DHL.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, without limitation, statements regarding the benefits to Mesa of the additional funds borrowed under the loan facility. term guaranteed with the US Treasury and its ability to overcome the obstacles created by the pandemic. All forward-looking statements contained in this press release are made as of the date hereof and are based on information available to Mesa as of that date. These forward-looking statements represent the judgment of the Company, as of the date of this press release, and the Company disclaims any intention or obligation to publicly update or revise any forward-looking statement, whether as a result of new information or future developments. or otherwise, except as required by applicable securities laws.