Mesa 3.0
#6191
Gets Weekends Off
Joined APC: May 2017
Posts: 2,145
Based on the last call, they will get asked about the United CPA. I wonder if JO will dance as effectively around the subject as he did in the last call.
#6193
Gets Weekends Off
Joined APC: Jul 2008
Posts: 4,203
Mike Lotz, President and Chief Financial Officer continued, “On January 29, 2019 the company closed on a $91.2 million five-year term loan at LIBOR +3.1%. The proceeds were used to pay down existing debt at LIBOR +7.25% plus yield enhancement of 1.5%. We also signed a term sheet (subject to final approvals and documentation) with GECAS for the purchase of ten (10) leased CRJ-700 aircraft currently operating at United. Upon completion of the transaction we have reduced the number of leased aircraft with third parties to 18.”
#6194
Based off the earnings release. I would say Mesa’s 700’s are safe..
Mike Lotz, President and Chief Financial Officer continued, “On January 29, 2019 the company closed on a $91.2 million five-year term loan at LIBOR +3.1%. The proceeds were used to pay down existing debt at LIBOR +7.25% plus yield enhancement of 1.5%. We also signed a term sheet (subject to final approvals and documentation) with GECAS for the purchase of ten (10) leased CRJ-700 aircraft currently operating at United. Upon completion of the transaction we have reduced the number of leased aircraft with third parties to 18.”
Mike Lotz, President and Chief Financial Officer continued, “On January 29, 2019 the company closed on a $91.2 million five-year term loan at LIBOR +3.1%. The proceeds were used to pay down existing debt at LIBOR +7.25% plus yield enhancement of 1.5%. We also signed a term sheet (subject to final approvals and documentation) with GECAS for the purchase of ten (10) leased CRJ-700 aircraft currently operating at United. Upon completion of the transaction we have reduced the number of leased aircraft with third parties to 18.”
#6195
Gets Weekends Off
Joined APC: May 2017
Posts: 2,145
#6196
Gets Weekends Off
Joined APC: Mar 2018
Position: Feeder of Amber
Posts: 229
#6197
Gets Weekends Off
Joined APC: May 2017
Posts: 2,145
I doubt these serve like the SkyWest spare in that it lacks partner colors, and can fly for any partner. I suspect these 900’s will be spares for American at its bases and will be in American colors. I guess it’s possible they may treated the same, but unlikely.
#6198
Spares for American flying. We are still being paid for them for 2 years but they are spares and we are to get bonuses for completing flying. We have not had a real spare except the 200 in PHX. If a plane goes down we cancel something. I suspect we would station one in PHX and one in DFW. The 200 is reportedly going away so we need at least one spare just to keep parity. Why not just acquire a couple 900s? I don't know but the American deal that the 8K talks about seems quite generous to me. I hope we can fulfill it.
#6199
#6200
Gets Weekends Off
Joined APC: Jul 2008
Posts: 4,203
Unless this happens...
•
In addition to American’s rights, if at any time during the term of the Term Sheet the Company fails to comply with an applicable performance metric on two or more occasions, then upon the second occurrence and each subsequent failure, the Company has the right, exercisable in its discretion, to elect to permanently withdraw six aircraft from the American CPA.
•
In addition to American’s rights, if at any time during the term of the Term Sheet the Company fails to comply with an applicable performance metric on two or more occasions, then upon the second occurrence and each subsequent failure, the Company has the right, exercisable in its discretion, to elect to permanently withdraw six aircraft from the American CPA.
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