Wheels Up Receives $40 Million from New Investors

Wheels Up has added another $40 million to the $390 million term loan and $100 million revolving credit facility it received in September. The funds were provided by Kore Capital and managed by Whitebox Advisors.

These new investors join Delta Air Lines, Certares Management, Knighthead Capital Management, and Cox Enterprises, providing an additional term loan of $40 million under the existing credit agreement. In October, Wheels Up CFO Todd Smith told BJT that the company planned to seek up to $50 million to add to the nearly $500 million loan/credit line combination it received in September.

"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 Wheels Up CEO George Mattson. During the third quarter, Wheels Up posted a loss of $145 million on $320 million in revenue.

In connection with closing the additional term loan, Wheels Up completed the second issuance of common stock to lenders on November 15. Lenders now hold shares equal to approximately 95 percent of the company's outstanding equity on a fully diluted basis as of Sept. 15, 2023, after giving effect to such issuance.