New Bank of America-led facility, with Delta
Air Lines credit support, provides growth flexibility as Wheels Up
expands its fleet with GrandView Aviation assets to enhance
customer experience
ATLANTA, Nov. 14,
2024 /PRNewswire/ -- On November 13, 2024, Wheels Up Experience Inc.
(NYSE: UP) closed its new $332 million revolving
equipment notes facility with Bank of America, and completed the
acquisition of GrandView Aviation's fleet of 17 Embraer Phenom 300
and Phenom 300E aircraft, and related maintenance assets and
customer programs. The closings mark a major step forward for
Wheels Up's strategic growth goals, aimed at delivering an elevated
and reliable experience for its customers. Wheels Up first
announced that it had entered into definitive agreements for these
transactions on October 22, 2024.
"Our fleet transition starts today with the strategic
acquisition of GrandView's Phenom fleet and the immediate
introduction of the Phenom fleet into our programmatic member as
well as charter offerings as we head into the peak holiday travel
season," said George Mattson, Chief
Executive Officer. "By expanding our fleet with newer, more capable
aircraft, we are positioning Wheels Up to remain at the forefront
of our industry, offering our customers private aviation solutions
that deliver greater flexibility, enhanced comfort, and the
reliable access our customers expect."
The company's new $332 million
revolving equipment notes facility, backed by credit support from
Delta Air Lines, refinanced Wheels Up's existing owned fleet,
financed the purchase of GrandView's fleet, and will provide
additional borrowing access to support the completion of Wheels
Up's fleet transition.
About Wheels Up
Wheels Up is a leading provider of on-demand private aviation in
the U.S. and one of the largest companies in the industry. Wheels
Up offers a complete global aviation solution with a large and
diverse fleet and a global network of safety vetted charter
operators, all backed by an uncompromising commitment to safety and
service. Customers can access charter and membership programs, as
well as unique commercial travel benefits through a one-of-a-kind,
strategic partnership with Delta Air Lines. Wheels Up also offers
freight, safety and security solutions and managed services to
individuals, industry, government and civil organizations.
Wheels Up is guided by the mission to deliver a premium solution
for every customer journey. With the Wheels Up mobile app and
website, members and customers have the digital convenience to
search, book and fly.
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain "forward-looking statements"
within the meaning of the federal securities laws. Forward-looking
statements are predictions, projections and other statements about
future events that are based on current expectations and
assumptions and, as a result, are subject to known and unknown
risks, uncertainties, assumptions, and other important factors,
many of which are outside of the control of Wheels Up Experience
Inc. ("Wheels Up" or the "Company"). These forward-looking
statements include, but are not limited to, statements
regarding: (i) the new $332
million revolving equipment notes facility (the "Revolving
Equipment Notes Facility") and financing transactions contemplated
thereby, including the Company's use of net proceeds therefrom for
general corporate purposes or to execute the Company's previously
announced fleet modernization strategy; (ii) the ability of the
Company to reborrow under the Revolving Equipment Notes Facility in
the future, subject to any restrictions under the related
definitive documentation or pursuant to the agreements governing
the Company's existing indebtedness obligations, and use the net
proceeds from such reborrowings to acquire additional aircraft or
for general corporate purposes; (iii) the Company's intended use
and future operation of the assets acquired from Grandview Aviation
LLC ("GrandView Aviation"), and any expected financial or
operational benefits or impacts to the Company as a result of the
transactions contemplated by the definitive documentation for such
acquisition or the operation of the assets acquired from GrandView
Aviation; and (iv) the Company's fleet modernization strategy and
the ability of the Company to execute such strategy, as well as the
expected operational impacts to the Company from implementing such
strategy on the timeline that it currently anticipates. The
words "anticipate," "continue," "could," "expect," "plan,"
"potential," "should," "would," "pursue" and similar expressions,
may identify forward-looking statements, but the absence of these
words does not mean that statement is not forward-looking.
Factors that could cause actual results to differ materially from
those expressed or implied in forward-looking statements can be
found in the Company's Annual Report on Form 10-K for the year
ended December 31, 2023 filed with
the U.S. Securities and Exchange Commission ("SEC") on March 7, 2024 and the Company's other filings
with the SEC from time to time. You are cautioned not to
place undue reliance upon any forward-looking statements, which
speak only as of the date made. Except as required by law,
the Company does not intend to update any of these forward-looking
statements after the date of this press release.
Contacts
Investors:
ir@wheelsup.com
Media:
press@wheelsup.com
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SOURCE Wheels Up
