JETBLUE AIRWAYS CORPORATION (NASDAQ:JBLU) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01. Entry into a Material Definitive Agreement.
an Amended and Restated Credit and Guaranty Agreement, dated as
of April 6, 2017 (the Amended and Restated Facility). The Amended
and Restated Facility is 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
Citibank, N.A., as administrative agent (the Agent).
and Guaranty Agreement, dated as of April 23, 2013, 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 the Agent, as amended (the Existing Facility),
and among other things, (i) increases the lending commitments by
$25 million, for total lending commitments of $425 million and
(ii) establishes the maturity date for the $425 million lending
commitments as April 6, 2021. JetBlue has not made any drawings
under the Amended and Restated Facility as of the date of this
report.
at a variable rate equal to the London interbank offering rate,
known as LIBOR, plus a margin of 2.00% per annum, or another rate
(at JetBlues election) based on certain market interest rates,
plus a margin of 1.00% per annum, in each case with a floor of
0%.
Facility are secured by liens on (i) certain take-off and landing
rights of JetBlue at John F. Kennedy International Airport,
LaGuardia Airport and Ronald Reagan Washington National Airport
and (ii) certain eligible aircraft spare parts (the Collateral).
Under the terms of the Amended and Restated Facility, JetBlue may
also pledge cash and cash equivalents, aircraft, engines and
flight simulators as collateral.
includes affirmative and negative covenants that restrict the
Company’s ability to, among other things, dispose of Collateral
or merge, consolidate or sell assets.
maintain (i) unrestricted cash and cash equivalents and unused
commitments available under all revolving credit facilities
(including the Amended and Restated Facility) aggregating not
less than $550 million and (ii) a minimum ratio of the borrowing
base of the Collateral (determined as the sum of a specified
percentage of the appraised value of each type of Collateral) to
outstanding obligations under the Amended and Restated Facility
of not less than 1.0 to 1.0. If the Company does not meet the
minimum collateral coverage ratio, it must either provide
additional collateral to secure its obligations under the Amended
and Restated Facility or repay the loans under the Amended and
Restated Facility by an amount necessary to maintain compliance
with the collateral coverage ratio.
contains events of default customary for similar financings. Upon
the occurrence of an event of default, the outstanding
obligations under the Amended and Restated Facility may be
accelerated and become due and payable immediately. In addition,
if certain change of control events occur with respect to
JetBlue, each lender under the Amended and Restated Facility has
the right to require the Company to repay any loan that it has
made under the Amended and Restated Facility.
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Item 2.03.
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Creation of a Direct Financial Obligation or an Obligation
under an Off-Balance Sheet Arrangement of a Registrant. |
Material Definitive Agreement is incorporated herein by
reference.
About JETBLUE AIRWAYS CORPORATION> (NASDAQ:JBLU)
JetBlue Airways Corporation is a passenger carrier company. The Company provides air transportation services across the United States, the Caribbean and Latin America. Its segments include Domestic, and Caribbean & Latin America. It operates various kinds of aircrafts, including Airbus A321, Airbus A320 and Embraer E190. It also provides premium transcontinental product called Mint. As of December 31, 2016, Mint included 16 fully lie-flat seats, four of which were in suites with a privacy door. The Company also provides Fly-Fi in-flight Internet service across its Airbus fleet. It provides its customers a choice to purchase tickets from three branded fares, which include Blue, Blue Plus and Blue Flex. Each of these fare include different offerings, such as free checked bags, reduced change fees and additional TrueBlue points. As of December 31, 2016, its Airbus A321 aircraft in a single cabin layout had 200 seats and those with Mint premium service had a seating capacity of 159 seats. JETBLUE AIRWAYS CORPORATION> (NASDAQ:JBLU) Recent Trading Information
JETBLUE AIRWAYS CORPORATION> (NASDAQ:JBLU) closed its last trading session up +0.06 at 21.16 with 5,323,941 shares trading hands.
