SkyWest closes $ 573 million secured loan facility under the CARES Act


ST. GEORGES, Utah, September 29, 2020 / PRNewswire / – SkyWest, Inc. (NASDAQ: SKYW) (“SkyWest”) today announced that it and its wholly owned subsidiary SkyWest Airlines, Inc. have entered into a five-year loan and guarantee agreement with the US Treasury Department providing SkyWest Airlines with a secured term loan facility to borrow up to $ 573 million under the Coronavirus Relief, Relief and Economic Security Act (CARES Act). At September 29, 2020, when entering into the loan agreement, SkyWest Airlines borrowed $ 60 million as part of the installation and has up to March 26, 2021 to determine whether it will borrow additional amounts for up to two subsequent borrowings.

The interest rate under the secured term loan facility is LIBOR plus 3.0% without amortization. In consideration for the loan, SkyWest is obligated to issue warrants to the US Department of the Treasury to purchase common stock based on and in connection with the amounts drawn on the secured term loan facility. In connection with the first $ 60 million draw under the facility, SkyWest issued warrants to purchase 211,416 common shares at an exercise price of $ 28.38 per share.

The loan and guarantee agreement also includes certain restrictions, including restrictions on the payment of dividends and the redemption of SkyWest shares. The secured loan is secured by airplane engines and airplane parts.

About SkyWest

SkyWest, Inc. is the holding company of SkyWest Airlines and SkyWest Leasing, an aircraft leasing company. SkyWest Airlines has a fleet of nearly 500 aircraft connecting passengers to more than 250 destinations across North America. SkyWest Airlines operates through partnerships with United Airlines, Delta Air Lines, American Airlines and Alaska Airlines carrying more than 43 million passengers in 2019.

Forward-looking statements

In addition to historical information, this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “forecasts”, “expects”, “intends”, “believes “,” Anticipates “,” “estimates”, “should”, “probable” and similar expressions identify forward-looking statements. Such statements include, without limitation, statements about the conditions, timing and expected benefits of the term loan facility guaranteed under the CARES Act, the impact of the COVID-19 outbreak on SkyWest’s business, financial condition and results of operations, as well as future financial and operational results , plans, objectives, expectations, estimates, intentions and prospects, and other statements that are not historical facts. All forward-looking statements included in this press release are made as of the date presented. tes and are based on information available to SkyWest on that date. SkyWest assumes no obligation to update any forward-looking statements for any reason. Readers should note that many factors could affect SkyWest’s future operating and financial results and could cause actual results to differ materially from those expressed in the forward-looking statements set forth in this press release. These factors include, but are not limited to, uncertainties regarding the impact of the secured term loan facility on SkyWest’s business and operations, the consequences of the COVID-19 outbreak on economic conditions, the the travel industry and our major partners in general and the condition and results of operations of SkyWest in particular, the prospects of entering into agreements with existing or other carriers to fly new aircraft, negotiations underway between SkyWest and its main partners regarding their contractual obligations, uncertainties regarding the operation of new aircraft, the ability to attract and retain qualified pilots, the impact of regulatory issues such as pilot rest rules and qualification requirements, and the ability to obtain aircraft financing.

SkyWest’s actual operating and financial results are also likely to vary, and may vary significantly, from those anticipated, estimated, projected or expected for a number of other reasons, including, in addition to those identified above: the global pandemic current COVID-19 and the onset of any other disease or similar public health threat that affects travel demand or travel behavior; the challenges of competing successfully in a highly competitive and rapidly changing industry; developments associated with fluctuations in the economy and demand for air travel, particularly related to the duration and impact of the COVID-19 pandemic, and associated declines in customer demand and spending; the financial stability of SkyWest’s major partners and any potential impact of their financial condition on SkyWest’s operations; fluctuations in flight schedules, which are determined by the major partners for which SkyWest conducts flight operations; variations in market and economic conditions; significant aircraft lease and debt commitments; the estimated useful lives of long-lived assets, residual values ​​of aircraft and related depreciation charges; labor relations and costs; the impact of global instability; rapidly fluctuating fuel costs and potential fuel shortages; the impact of natural or weather-related disasters on air travel and airline costs; aircraft deliveries; and other unforeseen factors. The risk factors, cautions and other conditions that could cause SkyWest’s actual results to differ materially from management’s current expectations are contained in the documents filed by SkyWest with the Securities and Exchange Commission, including including its most recent annual report on Form 10-K, quarterly reports on Form 10 -Q and current reports on Form 8-K.

SOURCE SkyWest, Inc.

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