Everybody Needs Liquidity

Mitsubishi UFJ Financial Group closed a deal for $75 million in credit to Sun Country Airlines, keeping operations going with liquidity for “general corporate purposes.”

The deal may be secured by some of Sun Country’s assets, like aircraft, engines, parts, inventory, receivables, and whatever cash the air line has on hand already. The news was met with relief at Sun Country, according to CEO Dave Davis. Mitsubishi UFJ acted as the Sole Structuring Agent and a Joint Lead Arranger in the recent deal, taking on a $37.5-million commitment. Sumitomo Mitsui Banking Corporation tagged in as the other Joint Lead Arranger, providing another $37.5 million commitment. The deal will replace Sun Country's existing $25 million Revolving Credit Facility, providing breathing room for continued operation as the carrier continues its growth.

While the airline hasn’t been treading water by any means, the general pain experienced in a roller coaster economy hasn’t done them any favors. Sun Country closed out 2024 with record earnings in the 4th Quarter, a feat credited to “significant capacity adjustments in response to industry oversupply during off-peak periods.” Sun Country cited the “improved economics” of its cargo business in the latter half of the year, too, forecasting “strong unit revenue trends in our passenger business”. The carrier announced a further expansion to their fleet with 8 more Amazon freighters, diversifying their streams for added resilience.

"We are excited to have closed this important transaction with Sun Country" said Benoist de Vimal, Head of Aviation Originations in the Americas at MUFG. "We appreciate Sun Country's trust in our bank and look forward to continuing to expand the relationship and supporting them with their needs in the future."

FMI: www.suncountry.com