Southwest Airlines has secured a $500 million senior secured term loan credit facility yesterday (March 11).
The facility was drawn in full on closing date. The loans bear interest based on either term SOFR plus a 1.10% margin or alternate base rate plus a 0.10% margin. The underlying term SOFR is subject to a floor of 0.00% and the alternate base rate of 1.00%.
The term loan facility matures in full on March 11, 2029. The facility includes an uncommitted incremental term loan feature allowing up to $500 million in incremental term loan commitments.
The loan is secured by a grant of a security interest in certain aircraft and related assets.
The company's existing revolving credit facility was not amended in relation to this term loan credit agreement.
BNP Paribas acted as administrative and collateral agent, as well as the initial lender.