WestJet has entered into a new secured term loan facility, capitalizing on a ratings upgrade and its strong financial performance, which exceeds pre-COVID earnings. The positive financial situation has enabled WestJet Group Inc. to extend the maturity of the substantial majority of its term loan borrowings to 2031.
"We are very pleased with this innovative structure, secured by our loyalty program and brand," said WestJet Group Chief Financial Officer Mike Scott.
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WestJet Chief Financial Officer Mike Scott. (Photo Credit: Michael (Mike) Scott)
"This opportunistic refinancing transaction enhances our financial flexibility and was oversubscribed, which is reflective of the strength of the WestJet Rewards Loyalty program and the WestJet brand."
WestJet says its current liquidity is in excess of $2 billion and its pro forma adjusted net leverage ratio at year-end 2023 was approximately three times adjusted earnings before interest, taxes, depreciation and amortization (EBITDA).
"We are the only airline of scale in North America that did not require any sector-specific government aid, incur any third-party debt, or issue any equity during the pandemic. Instead, we focused on keeping our balance sheet clean to capitalize on our ambitious growth plan, fuelled by the largest narrow-body orderbook of any airline in Canada," added Scott.
The closing of the new facility is subject to customary conditions and is expected to occur on February 14.
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