Alaska Air Secures Intercompany Loan Amid Hawaiian Airlines Merger

By Sabela Ojea

Alaska Air said it launched a proposed senior secured term loan facility to finance its debt as it seeks to merge with Hawaiian Airlines.

The regional airline on Monday said it will receive an intercompany loan after securing a $1.5 billion mileage plan financing with AS Mileage Plan Holdings.

Alaska intends to use the proceeds from the loan to redeem certain outstanding debt acquired or assumed in the merger of the company with Hawaiian Airlines, and for general corporate purposes and to support its liquidity position.

The news come about a week after Alaska Air and Hawaiian Airlines secured clearance from the Transportation Department to go ahead with their merger, conditioned on the airlines maintaining service on crucial routes, preserving the value of frequent-flier miles and other customer-service guarantees.

Late last year, Alaska agreed to acquire Hawaiian in a roughly $1 billion deal. The Justice Department last month completed its review of the merger and didn't challenge it on antitrust grounds.

Write to Sabela Ojea at sabela.ojea@wsj.com

(END) Dow Jones Newswires

September 23, 2024 13:27 ET (17:27 GMT)

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