April 23, 2024
Wheels Up has now received $60 million in interim financial support from Delta Air Lines after a $15 million payment on Sept. 6.
Wheels Up has yet to close the $500 million financing package led by Delta Air Lines. However, it received an additional $15 million on Wednesday.
According to an 8-k filing from the private jet flight provider after the market closed today, “On September 6, 2023, the Company and Delta entered into the Third Amendment to Secured Promissory Note to increase the aggregate principal amount of the Note by up to an additional $15.0 million, of which the additional $15.0 million was received by the Company on September 6, 2023.”
It continues, “The Note Third Amendment brought the total principal amount under the Amended Note up to $60.0 million.”
Per the filing, “The Third Amendment does not contain any additional material covenants or terms or amend any material covenants or terms set forth in the Note.”
READ: A brief history of Airlines and Private Jet partnerships
On August 15, Wheels Up announced a non-binding agreement that would see Delta and a group of investors gain 95% of the private jet company in exchange for $500 million.
Delta has been providing cash to support Wheels Up since early August.
Before the lifeline, the Atlanta-based airline was already the largest shareholder in Wheels Up.
It gained that stake after selling its Delta Private Jets unit to Wheels Up in 2020.
