CHICAGO, April 8 (Reuters) - U.S. Treasury officials have asked airlines seeking money from a $25 billion fund for payroll support to provide detailed information on their capital structure, liquidity and collateral, people briefed on the matter said.
Below is a list of the details Treasury has requested, as explained to Reuters by one of the people:
CAPITAL STRUCTURE
- Breakout of all secured and unsecured debt
- An overview of any financing completed in 2020, including applicable terms
- A detailed schedule of debt maturity in 2020 and any amortization
- Any prohibitions on issuing any unsecured or secured debt contained in existing agreements or indentures
- Permitted debt and permitted lien baskets in dollar terms for incremental secured and unsecured indebtedness
- Collateral currently used to support outstanding indebtedness
LIQUIDITY
- Current liquidity including cash, marketable securities, revolver ability and delayed draw term loan availability
- Expectations on when they will run out of liquidity
- Assumptions around daily cash burn, cost cuts, debt maturity, interest expense and amortization
- Best estimate for projected wages and benefits for April 1 to Sept. 30 given current operating assumptions for that period
COLLATERAL
- Overview of loyalty program
- Details on whether the loyalty program is encumbered or unencumbered
- Estimated value of the loyalty program
- Historical cash flow of the loyalty program
- An overview of all unencumbered aircraft, engines and spare parts
- The estimated value of the unencumbered assets broken down by asset class
- The estimated available financing of unencumbered assets
- An overview of any additional unencumbered collateral (Reporting by Tracy Rucinski; Editing by Steve Orlofsky)
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