The additional $40
million investment is expected to provide additional
financial stability and working capital to execute our plans for
future, profitable growth
NEW
YORK, Nov. 16, 2023 /PRNewswire/ -- Wheels Up
Experience (NYSE: UP) today announced that it has closed a new
investment by Kore Capital and funds managed by Whitebox
Advisors LLC on November 15, 2023.
These new investors join Delta Air Lines, Certares Management
LLC, Knighthead Capital Management LLC and Cox Enterprises,
providing an additional term loan facility in the amount of
$40 million under the existing Credit
Agreement. Upon the closing of this new investment, the Credit
Facility consists of the Term Loan in the amount of $390 million and the Revolving Credit Facility
in the amount of $100 million.
"As discussed on our earnings call last week, we expect our cash
balance at the end of the year will be flat to up versus third
quarter levels, reflecting a stabilization of deferred revenue and
working capital, the absence of the one-time transaction costs, and
proceeds received from the additional term loan," said George Mattson, Wheels Up Chief Executive
Officer. "We are very pleased with the commitment from our new
investors and the resources they are providing in addition to their
capital."
In connection with closing the additional term loan, Wheels Up
completed the second issuance of shares of common stock to the
lenders on November 15, 2023, such that the lenders now hold shares
equal to approximately 95% of the company's outstanding equity on a
fully diluted basis as of September 15,
2023, after giving effect to such issuance.
About Wheels Up
Wheels Up is a leading provider of on-demand private aviation in
the U.S. and one of the largest private aviation companies in the
world. Wheels Up offers a complete global aviation solution with a
large, modern and diverse fleet, backed by an uncompromising
commitment to safety and service. Customers can access membership
programs, charter and whole aircraft sales, as well as unique
commercial travel benefits through a 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 connect private flyers to
aircraft, and one another, through an open platform that seamlessly
enables life's most important experiences. Powered by a global
private aviation marketplace connecting its base of approximately
11,000 members and customers to a network of approximately 1,500
safety-vetted and verified private aircraft, Wheels Up is widening
the aperture of private travel for millions of consumers globally.
With the Wheels Up mobile app and website, members and customers
have the digital convenience to search, book and fly.
To learn more about Wheels Up, go to Wheelsup.com
About Kore Capital
Founded in 2002, Kore Capital ("Kore") is a multi-strategy credit
investor with a history of investing in aviation assets. To learn
more about Kore, go to www.KoreCapital.com.
About Whitebox Advisors LLC
Whitebox
Advisors LLC ("Whitebox") is a multi-strategy alternative asset
manager that seeks to generate optimal risk-adjusted returns for a
diversified base of public institutions, private entities and
qualified individuals. Founded in 1999, Whitebox invests across
asset classes, geographies, and markets through the hedge fund
vehicles and institutional accounts we advise. The firm maintains
offices in Minneapolis,
Austin, New York, London and Sydney.
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. The words
"anticipate," "continue," "could," "expect," "plan," "potential,"
"should," "would" and similar expressions, including references to
future efficiencies or profitability, 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 Wheels Up's filings with
the U.S. Securities and Exchange Commission. 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, Wheels
Up does not intend to update any of these forward-looking
statements made in this press release.
Securities Disclaimer
The issuance, offer and/or sale of any securities described herein
has not been registered under any federal or state securities laws
and may not be offered or sold in the
United States absent registration or an applicable exemption
from the registration requirements of the applicable federal and
state laws. This press release shall not constitute an offer to
sell or a solicitation of an offer to purchase any securities, and
shall not constitute an offer, solicitation or sale in any state or
jurisdiction in which such an offer, solicitation or sale would be
unlawful.
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SOURCE Wheels Up