Charter & Fractional
Delta Air Lines Consortium Completes Wheels Up Deal
$500 million credit facility buoys air charter company
Wheels Up King Air Beech 350 (Photo: Barry Ambrose)
Delta Air Lines is stepping in to rescue the financially ailing Wheels Up under an a deal that would give a majority stake to the airline and a consortium of investors. (Photo: Barry Ambrose)

Wheels Up this afternoon closed a previously announced half-billion-dollar investment by Delta Air Lines, Certares Management, Knighthead Capital Management, and Cox Enterprises. The credit facility includes a $350 million term loan from Delta, CK Wheels, and Cox, a $100 million revolving credit facility from Delta, and a $50 million term loan that is subject to lender approval and expected shortly after closing.

In exchange, the lenders will receive common stock representing 80 percent of the company's outstanding equity at closing. After stockholder approval of an amendment to Wheels Up’s certificate of incorporation, the lenders will own 95 percent of the company’s outstanding equity.