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 closed a $500 million investment and credit facility from Delta Air Lines, Certares Management, Knighthead Capital Management, and Cox Enterprises.
The investment aims to provide financial stability, future profitability, and long-term growth for Wheels Up, deepening its commercial partnership with Delta.
The investing group will ultimately own 95 percent of Wheels Up's outstanding equity and appoint the majority of directors to its newly structured board.

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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.