SOUTHWEST AIRLINES CO (LUV) Form 8-K — Aug 12, 2026
Southwest Airlines entered into a new $2 billion five-year revolving credit facility on August 10, 2026, maturing August 10, 2031, with JPMorgan Chase and Citibank as co-administrative agents and a broad syndicate of documentation agents. The facility was undrawn at signing, bears interest at Term SOFR plus a margin of 0.875% to 1.625% (with a 1.00% SOFR floor), and includes an uncommitted accordion that can expand capacity to $3 billion, plus up to two one-year maturity extensions.
Key figures
- Debt Amount
- 2000000000
- Interest Rate
- Term SOFR + 0.875%-1.625% per annum (or Alternate Base Rate + 0.000%-0.625%); SOFR floor of 1.00%
- Maturity Date
- August 10, 2031
- Extension Options
- up to two one-year maturity extensions subject to lender consent
- Accordion Increment Cap
- $1,000,000,000
- Coverage Ratio Covenant
- 1.25 to 1.00, with one-time option to reduce to 0.80 to 1.00 for two consecutive fiscal quarters
- Collateral Coverage Test
- lien-free aircraft pool appraised at not less than 1.25x total commitment
- Prior Facility Terminated
- revolving credit facility dated August 3, 2016, which would have expired August 4, 2028
- Accordion Max Facility Size
- $3 billion
- Amounts Outstanding At Signing
- 0
Price after filing
Close on the filing date to close N calendar days later (from $44.98). Historical, not a forecast.
AI analysis
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