flyingpotato
Well-Known Member
Announces +300 million credit line with BoFA and Delta.
Buying Phenom 300 and CL300/350s to replace current fleet.
Stock has never recovered from its $110 pandemic era high. Now bouncing around $2.00.
Revenue in continuous y/y decline. Lost 21 per cent of its customers in 2023.
Cut west coast MRO/MX facilities to focus more on East cost ops (higher exposure to hurricane and winter seasons).
Recent multiple departures of high level execs. Narrowly avoided bankruptcy in 2023 after Delta injected more credit to the company.
SA Analyst: "Wheels Up hasn't yet delivered a silver arrow that allows us to claim the company has successfully executed a turnaround."
Ed Bastian, CEO of Delta Air Lines: "In the year since we've invested in Wheels Up, their operational performance, financial progress and the successful revamp of their customer offering have validated our decision to embark on this one-of-a-kind strategic partnership".
"We feel more confident than ever that Wheels Up is on the right track to be a global leader in private aviation."
But can the company really turn around? And is Delta simply making a big bet that could blow up spectacularly?
ATLANTA, Oct. 22, 2024 /PRNewswire
Wheels Up to acquire the entire Phenom fleet of GrandView Aviation, a subsidiary of Global Medical Response. The agreement provides for the acquisition of their entire fleet of 17 Embraer Phenom 300 and Phenom 300E aircraft and certain related maintenance assets to support the fleet, at a purchase price of $105 million.
Wheels Up expects to assume GrandView's existing customer programs and retain most of the existing pilot group, integrating them into the existing Wheels Up pilot workforce.
The company intends to continue to operate in support of its customers a fleet of King Air aircraft.
GrandView will operate the Embraer Phenom aircraft on Wheels Up's behalf while the aircraft are transitioned to the company's Wheels Up Private Jets FAA operating certificate.
Wheels Up intends to grow its fleet of Phenom series by acquiring or leasing additional aircraft in the secondary market.
Will retire its existing fleet of light and mid-sized jet aircraft within approximately three years.
Wheels Up to acquire a fleet of pre-owned Challenger 300 and Challenger 350 aircraft via the secondary market through a combination of outright purchases and long-term leasing.
Will sell all 13 of its currently owned Citation X aircraft.
The Bombardier Challenger 300 Series aircraft are expected to enter Wheels Up's fleet beginning next year.
Wheels Up expects to complete the transition to the Challenger platform within three years.
Financing to be Provided by Bank of America with Credit Support from Delta Air Lines for a new, five-year, up to $332 million senior secured revolving credit facility.
The financing is also expected to deliver up to $115 million of additional cash to the balance sheet of Wheels Up with which Wheels Up expects to acquire additional Phenom and Challenger aircraft in the future.
Delta Air Lines is expected to provide credit support for the new financing, enhancing Wheels Up's access to capital and on more attractive terms than would otherwise be available.
Buying Phenom 300 and CL300/350s to replace current fleet.
Stock has never recovered from its $110 pandemic era high. Now bouncing around $2.00.
Revenue in continuous y/y decline. Lost 21 per cent of its customers in 2023.
Cut west coast MRO/MX facilities to focus more on East cost ops (higher exposure to hurricane and winter seasons).
Recent multiple departures of high level execs. Narrowly avoided bankruptcy in 2023 after Delta injected more credit to the company.
SA Analyst: "Wheels Up hasn't yet delivered a silver arrow that allows us to claim the company has successfully executed a turnaround."
Ed Bastian, CEO of Delta Air Lines: "In the year since we've invested in Wheels Up, their operational performance, financial progress and the successful revamp of their customer offering have validated our decision to embark on this one-of-a-kind strategic partnership".
"We feel more confident than ever that Wheels Up is on the right track to be a global leader in private aviation."
But can the company really turn around? And is Delta simply making a big bet that could blow up spectacularly?
ATLANTA, Oct. 22, 2024 /PRNewswire
Wheels Up to acquire the entire Phenom fleet of GrandView Aviation, a subsidiary of Global Medical Response. The agreement provides for the acquisition of their entire fleet of 17 Embraer Phenom 300 and Phenom 300E aircraft and certain related maintenance assets to support the fleet, at a purchase price of $105 million.
Wheels Up expects to assume GrandView's existing customer programs and retain most of the existing pilot group, integrating them into the existing Wheels Up pilot workforce.
The company intends to continue to operate in support of its customers a fleet of King Air aircraft.
GrandView will operate the Embraer Phenom aircraft on Wheels Up's behalf while the aircraft are transitioned to the company's Wheels Up Private Jets FAA operating certificate.
Wheels Up intends to grow its fleet of Phenom series by acquiring or leasing additional aircraft in the secondary market.
Will retire its existing fleet of light and mid-sized jet aircraft within approximately three years.
Wheels Up to acquire a fleet of pre-owned Challenger 300 and Challenger 350 aircraft via the secondary market through a combination of outright purchases and long-term leasing.
Will sell all 13 of its currently owned Citation X aircraft.
The Bombardier Challenger 300 Series aircraft are expected to enter Wheels Up's fleet beginning next year.
Wheels Up expects to complete the transition to the Challenger platform within three years.
Financing to be Provided by Bank of America with Credit Support from Delta Air Lines for a new, five-year, up to $332 million senior secured revolving credit facility.
The financing is also expected to deliver up to $115 million of additional cash to the balance sheet of Wheels Up with which Wheels Up expects to acquire additional Phenom and Challenger aircraft in the future.
Delta Air Lines is expected to provide credit support for the new financing, enhancing Wheels Up's access to capital and on more attractive terms than would otherwise be available.