Alaska Airlines, Horizon Air apply for USD1.1bn loan under CARES Act

Alaska Airlines and Horizon Air finalised (23-Apr-2020) an agreement with the US Department of the Treasury to receive full disbursement of USD992 million in funds through the Payroll Support Program (PSP), under the CARES Act. The fund consists of USD725 million in a grant and USD267 million in a 10 year term loan. Alaska and Horizon have also now applied for a separate federal loan funding through another programme under the CARES Act, worth USD1.1 billion. Funds loaned to the airlines through this secured term loan agreement would be five years and must be paid back in full. Provided the agreement is finalised, the Alaska Air Group will issue warrants to the US Treasury for non voting shares of common stock worth 10% of the loan value at USD31.61 per share. [more - original PR]