SkyWest, Inc. has announced that its wholly-owned subsidiary SkyWest Airlines has entered into a Payroll Support Program 3 Agreement with the U.S. Treasury Department to receive a total of approximatelyย $250 millionย under the American Rescue Plan Act of 2021. SkyWest received half of theย $250 millionย onย April 23, 2021ย and expects to receive the remaining funding during the second quarter of 2021.
In consideration for the funding, approximatelyย $45 millionย will be in the form of a ten-year, low interest unsecured term loan, and SkyWest will issue to the U.S. Treasury Department (“Treasury”) warrants to purchase approximately 78,317 shares of SkyWest common stock at a strike price ofย $57.47.
The funds received under this Payroll Support Program will be used to pay for the wages, salaries and benefits of thousands of SkyWest Airlines employees.
This Program includes certain restrictions similar to the first two Payroll Support Programs, including limitations on involuntary terminations and furloughs throughย September 30, 2021, restrictions on the payment of dividends and the repurchase of shares throughย September 30, 2022, and certain limitations on executive compensation throughย April 1, 2023.
Additionally, SkyWest also announced it received an additionalย $35 millionย payroll support funding onย April 23, 2021ย from Treasury under the Payroll Support Program Extension agreement (“PSP 2”). In consideration for the additional funding under PSP 2, approximatelyย $10 millionย will be in the form of a ten-year low interest unsecured term loan, and SkyWest will issue to Treasury warrants to purchase approximately 25,958 shares of SkyWest common stock at a strike price ofย $40.41.
Top Copyright Photo: United Express-SkyWest Airlines Embraer ERJ 170-200LL (ERJ 175) N614UX (msn 17000815) PAE (Nick Dean). Image: 953190.
United Express-SkyWest Airlines aircraft slide show:
United Express-SkyWest Airlines Route Map:
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