Hawaiian Airlines enters $175 million credit facility with Citibank

By Jennifer Chiou

New York, Nov. 13 – Hawaiian Holdings, Inc. wholly owned subsidiary Hawaiian Airlines, Inc. entered into on Nov. 7 a credit and guaranty agreement with Citibank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The agreement provides for a $175 million revolving credit and letter-of-credit facility.

As of Nov. 7, no company assets are pledged under the credit facility as collateral, the filing stated.

Borrowings will bear interest at Libor plus 300 bps.

The loan will come due on Nov. 7, 2017.

The credit facility requires the company to maintain unrestricted cash and cash equivalents and unused commitments available under all revolving credit facilities aggregating no less than $300 million.

The company also has to maintain a minimum ratio of the borrowing base of the collateral to outstanding obligations under the credit facility of no less than 1.0 to 1.0, the filing added.

The airline is based in Honolulu.

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