Alaska Air secures $1.2 billion in private funding and a subsidiary receives $30 million from CARES Act

Alaska Air Group Inc. said Thursday that it has secured $1.2 billion in private funding while a subsidiary, McGee Air Services, a ground services company that operates independently, has received $30 million in loans from the Payroll Support Program (PSP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act. Alaska Airlines and Horizon Air have also received $992 million, including a $725 million grant and a $267 million loan, that that companies can use exclusively for employee wages and benefits through September 30. Alaska Air's private loan will be funded on or around July 2, with the company using 61 of its planes as collateral. Series A, a $966 million portion of the loan, will be repaid by Aug. 15, 2027, and the $208 million in Series B will be repaid by Aug. 15, 2025. Alaska Air stock rose 3.8% in Thursday premarket trading, but has fallen 47.3% for the year to date. The S&P 500 index is down 3.6% for 2020 so far.

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