WestJet Group Inc. announced that it extended the maturity of the substantial majority of its term loan borrowings to 2031. WestJet did so by entering into a new secured term loan facility, capitalizing on its ratings upgrade and its strong financial performance, which exceeded its pre-COVID earnings.
"We are very pleased with this innovative structure, secured by our loyalty program and brand," said WestJet Group Chief Financial Officer Mike Scott. "This opportunistic refinancing transaction enhances our financial flexibility and was oversubscribed, which is reflective of the strength of the WestJet Rewards Loyalty program and the WestJet brand."
WestJet's liquidity is in excess of $2 billion and its pro forma adjusted net leverage ratio at year-end 2023 was approximately three times adjusted earnings before interest, taxes, depreciation and amortization (EBITDA).
"We are the only airline of scale in North America that did not require any sector-specific government aid, incur any third-party debt, or issue any equity during the pandemic. Instead, we focused on keeping our balance sheet clean to capitalize on our ambitious growth plan, fuelled by the largest narrowbody orderbook of any airline in Canada," continued Scott.
The closing of the new facility is subject to customary conditions and is expected to occur on February 14, 2024.
Barclays Bank PLC acted as sole administrative agent and structuring agent for the new facility.
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