Wheels Up closes new investment by Kore Capital, Whitebox Advisors

Wheels Up Experience announced that it has closed a new investment by Kore Capital and funds managed by Whitebox Advisors LLC on November15. These new investors join Delta Air Lines,Certares Management LLC, Knighthead Capital Management LLC and Cox Enterprises, providing an additional term loan facility in the amount of $40M under the existing Credit Agreement. Upon the closing of this new investment, the Credit Facility consists of the Term Loan in the amount of $390M and the Revolving Credit Facility in the amount of $100M. “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 George Mattson, Wheels Up CEO. “We are very pleased with the commitment from our new investors and the resources they are providing in addition to their capital.” In connection with closing the additional term loan, Wheels Up completed the second issuance of shares of common stock to the lenders on November15, such that the lendersnow hold shares equal to approximately 95% of the company’s outstanding equity on a fully diluted basis as of September 15, after giving effect to such issuance.