Frontier Airlines Holdings, acting through affiliated entities, has secured a USD205 million revolving line of credit intended for, among other things, aircraft predelivery payments, according to a September 26, 2024, Securities Exchange Commission filing.
The line of credit, secured by Frontier’s loyalty programme and brand-related assets, may be increased to USD500 million, subject to certain terms, conditions, and additional lending commitments. While not disclosing the identities of the other parties were, on October 3, lessor Jackson Square Aviation confirmed closing a USD150 million pre-delivery payment financing facility with Frontier.
In addition, Frontier has negotiated new pre-delivery payment facilities and amended its existing pre-delivery financing facility to increase its financing capacity to approximately USD475 million. This will cover aircraft deliveries to Frontier Airlines (F9, Denver International) from Airbus to the end of calendar 2027 and also some deliveries scheduled for 2028. The previous pre-delivery payment facility covered aircraft due through 2026. The revolving loan facility will be the Frontier's senior secured obligation. Jackson Square says their facility partially covers Frontier's aircraft pre-delivery payments through 2027.
"The Frontier and Jackson Square Aviation relationship extends over many years through aircraft sale-leaseback financing, and we are excited about this evolution in our partnership,” said Jackson president and CCO Chris Dailey.
According to the ch-aviation PRO airlines module, Frontier flies to 96 airports in 12 countries relying on a fleet of 153 aircraft including eight A320-200s, eighty-two A320-200Ns, twenty-one A321-200, and forty-two A321-200NX. It also has on order for forty-nine A320-200Ns and 145 A321-200NX.
