JetBlue Airways Corporation
04/17/2026 | Press release | Distributed by Public on 04/17/2026 14:21
Material Event (Form 8-K)
Item 8.01 Other Events.
JetBlue Airways Corporation has entered into a Framework Agreement, dated as of April 14, 2026 (the "Framework Agreement"), with certain affiliates of SKY Leasing, LLC named therein, as initial lenders, and UMB Bank, N.A., as administrative agent and as security trustee, pursuant to which $500 million of debt financing commitments will be made available for JetBlue to borrow, secured by a mix of up to 22 of the Company's currently owned A320 and A220 family aircraft (the "Aircraft"). Each borrowing will be made as a separate loan with respect to an individual Aircraft, subject to the terms of the Framework Agreement.
The loans to be extended under the Framework Agreement will be funded on one or more funding dates and each loan will have maturity dates ranging from 2033 through 2037 and will be secured by a first-priority security interest in the applicable Aircraft. Each loan will bear interest payable monthly on a fixed rate basis (comprised of US Treasuries plus an applicable margin) which is expected to be in the range of 6.00% to 6.75%. Each loan has a no call provision and is prepayable at par thereafter.
The closing of each loan will be subject to certain conditions precedent, including the execution and delivery of related loan and aircraft security documents and other customary conditions for transactions of this type. In addition, the loan for each Aircraft will be, under certain circumstances, cross-defaulted and cross-collateralized with the loans for the other Aircraft, and each loan will include customary terms and provisions for transactions of this type. The Framework Agreement contains a committed accordion feature for up to $250 million of incremental debt financing commitments for additional individual aircraft-secured loans on terms to be agreed.
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