ST. GEORGE, Utah, Jan. 15, 2021 /PRNewswire/ -- SkyWest, Inc.
(NASDAQ: SKYW) ("SkyWest") today announced that its wholly-owned
subsidiary SkyWest Airlines has entered into a Payroll Support
Program Extension Agreement with the U.S. Treasury Department to
receive a total of approximately $233
million under the Consolidated Appropriations Act of 2021.
SkyWest received half of the $233
million today and expects to receive the second half in
February 2021. In consideration for
the funding, approximately $40
million will be in the form of a ten-year, low interest
unsecured term loan, and SkyWest will issue to the U.S. Treasury
Department warrants to purchase approximately 98,815 shares of
SkyWest common stock at a strike price of $40.41.
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 original Payroll Support Program,
including limitations on involuntary terminations and furloughs
through March 31, 2021, restrictions
on the payment of dividends and the repurchase of shares through
March 31, 2022, the recall of
involuntarily terminated or furloughed employees after Sept. 30 with pay from Dec. 1, 2020 to March 31,
2021, and certain limitations on executive compensation
through October 1, 2022.
Additionally, SkyWest also announced that SkyWest Airlines has
entered into an amendment to its Loan and Guaranty Agreement with
the U.S. Treasury Department extending the deadline pursuant to
which SkyWest Airlines may borrow under the $725 million facility from March 26, 2021 to May 28,
2021. The other terms of the Loan and Guaranty Agreement
were not amended and remain in effect.
About SkyWest
SkyWest, Inc. is the holding company for SkyWest Airlines and
SkyWest Leasing, an aircraft leasing company. SkyWest Airlines has
a fleet of nearly 500 aircraft connecting passengers to over 220
destinations throughout North
America. SkyWest Airlines operates through partnerships with
United Airlines, Delta Air Lines, American Airlines and Alaska
Airlines carrying more than 43 million passengers in 2019.
Forward Looking-Statements
This release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Words such as " forecasts," " expects," " intends," " believes," "
anticipates,"" estimates," " should," " likely" and similar
expressions identify forward-looking statements. Such statements
include, but are not limited to, statements about the expected
timing and benefits of the 2021 Appropriations Act funding and
other statements that are not historical facts. All forward-looking
statements included in this release are made as of the date hereof
and are based on information available to the Company as of such
date. The Company assumes no obligation to update any
forward-looking statements unless required by law. Readers should
note that many factors could affect the future operating and
financial results of the Company and the timing of certain events
and could cause actual results to vary materially from those
expressed in forward-looking statements set forth in this release.
These factors include, but are not limited to, uncertainties
regarding the impact of the 2021 Appropriations Act funding on the
Company's business and operations, and the consequences of the
continuing COVID-19 outbreak to economic conditions, the travel
industry and the Company's major partners in general and the
financial condition and operating results of the Company in
particular. Risk factors, cautionary statements and other
conditions which could cause the Company's actual results to differ
materially from management's current expectations are contained in
the Company's filings with the Securities and Exchange Commission,
including its most recent Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/skywest-to-receive-233-million-through-a-payroll-support-program-extension-under-2021-appropriations-act-301209550.html
SOURCE SkyWest, Inc.