Delta Air Lines finance chief, Dan Janki, will be joining the board of Wheels Up Experience as chairman. This comes after Delta and other investors committed to providing additional funding to the struggling private aviation company.
Delta, a longstanding investor in Wheels Up, announced on Tuesday that it would expand its partnership with the company in order to help make Wheels Up profitable. Last week, Wheels Up revealed that it was exploring strategic options, while The Wall Street Journal reported that the company was in talks with lenders about restructuring its debt.
Investment firms, Certares Management and Knighthead Capital Management, along with Delta, have agreed in principle to supply Wheels Up with a total of $500 million in additional funding. This includes a $400 million term loan and a $100 million revolving facility from Delta.
As part of the non-binding agreement, Delta will contribute $150 million through new money term loans and the $100 million credit facility. A fund managed by affiliates of Certares and Knighthead will add an additional $150 million loan. The remaining $100 million will be provided by other investors.
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