Wheels Up Secures $68M Mezzanine Facility for Fleet Modernization
Wheels Up secured a $68 million secured mezzanine facility from Sankaty Jet Capital to fund its fleet modernization. The capital will finance purchases of additional Phenom 300 and Challenger 300 jets, secured by 51 existing aircraft valued at about $277.8 million and accommodating new acquisitions over 18 months.
1. Financing Agreement
Wheels Up closed a $68 million committed secured mezzanine facility with Sankaty Jet Capital, a wholly owned subsidiary of AIP Capital, strengthening its capital structure for expansion.
2. Deployment of Capital
The facility proceeds will finance the acquisition of additional Embraer Phenom 300 and Bombardier Challenger 300 aircraft, advancing the company’s previously announced fleet modernization program.
3. Collateral Structure
The financing is secured initially by 51 existing aircraft representing core assets with an appraised value of about $277.8 million and is structured to accommodate additional aircraft acquisitions over the next 18 months.
4. Strategic Outcomes
This transaction enhances Wheels Up’s operational capacity, reflects confidence from institutional lenders and supports its strategy to scale on-demand private aviation services.