Wheels Up to Continue Operations After Closing Transaction with Delta, Other Investors

Deal will give lenders 95 percent stake in the company and control of the board.

Jonathan Welsh

Thursday, September 21, 2023 at 05:58 PM ET

Verified

Delta Air Lines and other investors seek to sustain Wheels Up operations. [Courtesy: Wheels Up]

Key Takeaways:

Wheels Up Experience has finalized a $500 million investment and credit facility from Delta Air Lines, Certares Management LLC, Knighthead Capital Management LLC, and Cox Enterprises.
This capital infusion aims to secure Wheels Up's financial stability, future profitability, and long-term growth, reinforced by new CEO George Mattson.
The investment significantly alters ownership and governance, with the lenders ultimately acquiring 95% of Wheels Up's equity and appointing a majority of its board members.

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Wheels Up Experience (NYSE: UP) said it has closed the previously announced investment by Delta Air Lines, Certares Management LLC, Knighthead Capital Management LLC, and Cox Enterprises.

The investment agreement, which includes a $500 million credit facility to Wheels Up, combines the experience of Delta, the travel and tourism expertise of Certares, and the turnaround and restructuring knowledge of Knighthead. The announcement follows the selection last week of George Mattson as the new Wheels Up CEO.