April 8, 2020 / 6:58 PM / 3 months ago

FACTBOX-The list of U.S. Treasury questions for airlines seeking bailout cash

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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