Its Wheels Up Partners LLC subsidiary has issued equipment notes.
The aggregate principal amount is $270 million through an Enhanced Equipment Trust Certificates loan structure.
The sale and issuance of the equipment notes provide Wheels Up with $259 million of net proceeds after transaction expenses.
The EETC notes are secured by a primary lien on certain of Wheels Up’s owned aircraft.
They have a maturity of up to seven years and a coupon of 12%.
“These proceeds give us additional financial flexibility to invest in our business as we pursue our goal for positive adjusted EBITDA in 2024,” said CFO Todd Smith in the announcement.
He added, “We believe we are in a strong competitive position to use the technology we’re deploying and our improving operational capability to provide an unparalleled customer experience in private aviation.”
Proceeds will support investments in operations, technology, and member experience
Separately, the company said third-quarter financial results would be released after the market closes on Wednesday, November 9, 2022.
In Q2, revenues soared 49% to $425 million. However, the net loss increased to $92 million. Cash and cash equivalents were $427 million.