Sun Country, Inc. Completes Private Offering of $188,277,000 Enhanced Equipment Trust Certificates
Sun Country, Inc. has successfully completed an offering of Enhanced Equipment Trust Certificates, raising a total of $172.5 million, with an additional $15.8 million expected by September 15, 2022. The proceeds will finance 13 Boeing 737-800 aircraft, including refinanced and newly acquired planes. The Class A and B Certificates have interest rates of 4.84% and 5.75%, respectively, with weighted average interest at 5.06%. These securities are offered to accredited investors and will not be registered under the Securities Act.
- Raised $172.5 million from the offering of Enhanced Equipment Trust Certificates.
- Proceeds will finance the acquisition and refinancing of 13 Boeing 737-800 aircraft.
- Certificates offer a structured investment with defined interest rates of 4.84% and 5.75%.
- Certificates are not registered under the Securities Act, limiting marketability.
- Potential dilution for current shareholders if additional offerings occur.
MINNEAPOLIS, March 31, 2022 (GLOBE NEWSWIRE) -- Sun Country, Inc. (“Sun Country”), a wholly owned subsidiary of Sun Country Airlines Holdings, Inc. (NASDAQ: SNCY), today announced the completion of an offering of Enhanced Equipment Trust Certificates (the “Certificates”) which will be used to obtain financing secured by 13 Boeing 737-800 aircraft. Five of the 13 aircraft are currently owned and are being refinanced, two of the aircraft are currently owned outright, four of the aircraft are expected to be acquired on or about the initial funding date, and the remaining two aircraft are under lease and are to be purchased from the lessors under purchase options in the respective lease contracts. Sun Country received gross proceeds of
The offering is comprised of
The Class A Certificates have an interest rate of
The Certificates were offered and sold in reliance on exemptions from registration under the Securities Act of 1933, as amended (the “Securities Act”) for offers and sales of securities that do not involve a public offering solely to persons who are “accredited investors” within the meaning of paragraph (1), (2), (3) or (7) of Rule 501(a) of Regulation D under the Securities Act. The Certificates will not be registered under the Securities Act or any other securities laws of any jurisdiction and will not have the benefit of any exchange offer or other registration rights. The Certificates may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the Certificates nor shall there be any sale of the Certificates in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Sun Country
Sun Country Airlines is a new breed of hybrid low-cost air carrier that dynamically deploys shared resources across our synergistic scheduled service, charter and cargo businesses. Based in Minnesota, we focus on serving leisure and visiting friends and relatives (“VFR”) passengers and charter customers and providing CMI service to Amazon, with flights throughout the United States and to destinations in Mexico, Central America, Canada and the Caribbean.
For photos, b-roll and additional company information, visit www.suncountryview.com/newsroom/multimedia/.
FAQ
What funds did Sun Country raise through the SNCY offering?
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Are the SNCY Certificates registered with the SEC?
