Alaska Airlines has announced it has secured nearly USD 1.2bn in private loans to secured private loans using 61 aircraft as collateral, the company said.
The funding will be used to further secure the airlines´ financial stability and future during the COVID-19 recovery period, while balancing the appropriate amount of liquidity.
As part of an Enhanced Equipment Trust Certificate (EETC) offering, Alaska will use 26 Boeing 737-800s, 16 Boeing 737-900ERs and 19 Embraer 175s to back the debt.
The aircraft will remain encumbered until the debt is repaid: Series A (USD 966 million) will be repaid by Aug. 15, 2027, and Series B (USD 208 million) will be repaid by Aug. 15, 2025.
Alaska Airlines and its regional partners serve more than 115 destinations across the United States and North America, providing essential air service for our guests along with moving crucial cargo shipments, such as food, medicine, mail and e-commerce deliveries.