Hawaiian Airlines has borrowed $45 million under a new loan agreement with the US Treasury, which permits additional borrowing of up to $240 million.
The proceeds from the facility will be used for certain general corporate purposes.
The applicable interest rate for the $45 million loan is 2.87% per annum for the period from the Sept. 25 closing date through Sept. 15, 2021.
All advances under the facility will be in the form of term loans, all of which will mature and be due and payable in a single installment on June 30, 2024. Voluntary prepayments of $1 million may be made without premium or penalty at any time.
The loan is secured by a first priority security interest on Hawaiian’s HawaiianMiles frequent flyer program and associated intellectual property, 14 Boeing 717-200 airframes and the related 28 Rolls Royce BR715-A1-30 engines.
Hawaiian has also entered into a warrant agreement with US Treasury for up to 3,553,299 shares.
On September 28, 2020, the Treasury announced that it expects to increase the maximum available to be borrowed under the Facility to $622 million.