Wheels Up Closes $100M Unsecured Term Loan from Key Investors at 12% PIK Interest
UP sits 85% above its 52-week low of $4.69.
Summary
Wheels Up secured a $100 million unsecured term loan from its major investors, providing critical liquidity and extending its financial runway despite expensive 12% PIK interest terms.
Key Events · Financing and Capital Events · UP
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Unsecured Term Loan Closed
Wheels Up finalized a $100 million unsecured term loan facility on May 29, 2026, from Delta Air Lines, Cox Investment Holdings, and CK Wheels. This follows a commitment announced on May 10, 2026.
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High PIK Interest Rate
The loan carries a 12% per annum interest rate, payable in kind (PIK) and capitalized quarterly, preserving cash but indicating a high cost of capital.
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Critical Liquidity for Operations
Proceeds will be used for working capital, general corporate purposes, growth initiatives, and fleet scaling, providing essential liquidity for the financially challenged company.
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Existing Debt Agreement Amended
The company also entered into Amendment No. 4 to its existing 2023 Credit Agreement to permit the new 2026 Term Loan and reflect a previously closed $68 million Series B Revolving Equipment Notes Facility as senior secured indebtedness.
Analysis · UP · Energy & Transportation
Wheels Up Experience Inc. has finalized and closed a $100 million unsecured term loan facility from its lead investors, Delta Air Lines, Cox Investment Holdings, and CK Wheels. This financing, while carrying a high 12% PIK (payment-in-kind) interest rate, is crucial for the company's liquidity, working capital, and growth initiatives, especially given its recent financial challenges including significant net losses and cash burn. The loan extends the company's financial runway and demonstrates continued support from its major stakeholders.
At the time of this filing, UP was trading at $8.66 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $319.5M. The 52-week trading range was $4.69 to $70.00. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.