Financing ·
Southwest Airlines Co. terminated its existing revolving credit facility dated August 3, 2016, and entered into a new…
LUVSouthwest Airlines Co
Southwest Airlines Co. terminated its existing revolving credit facility dated August 3, 2016, and entered into a new $2 billion five-year revolving credit agreement on August 10, 2026. The new facility matures on August 10, 2031, with options for two one-year extensions. It includes an uncommitted accordion feature allowing the facility size to increase to $3 billion. Interest rates are based on Term SOFR or Alternate Base Rate plus applicable margins ranging from 0.875% to 1.625% and 0.000% to 0.625%, respectively, with a SOFR floor of 1.00%. The agreement requires a Collateral Coverage Test maintaining a minimum aggregate appraised value of aircraft assets at 1.25 times the commitment and a financial coverage ratio of 1.25 to 1.00, reducible to 0.80 to 1.00 for two consecutive quarters. JPMorgan Chase Bank, N.A., and Citibank, N.A. serve as co-administrative agents. Southwest Airlines Co. operates in the airline industry, providing domestic and international passenger air transportation services.