'Jet Firm Wheels Up Inks Deal Giving Knighthead, Certares Control; The Company Is Expected To Get $500M In New Money; Wheels Up Is Focusing On Its Most Profitable Coastal Routes' - Bloomberg News
Portfolio Pulse from Happy Mohamed
Private jet company Wheels Up Experience Inc. is set to cede control to investors including Knighthead Capital Management and Certares Management in a new financing deal. The deal involves $500 million in new financing from affiliates of Knighthead and Certares, Delta Air Lines Inc., and other investors, who will receive 95% of Wheels Up's equity in return.
August 15, 2023 | 4:32 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
Delta Air Lines is part of the investor group providing $500 million in new financing to Wheels Up, in exchange for 95% of the company's equity.
Delta Air Lines' investment in Wheels Up could potentially provide a new revenue stream and diversify its business. However, the exact impact will depend on the success of Wheels Up's business strategy and the proportion of equity Delta receives.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Wheels Up is set to receive $500 million in new financing from investors including Delta Air Lines, in exchange for ceding 95% of its equity.
The new financing will provide Wheels Up with significant capital to invest in its business. However, it will also result in a significant dilution of existing shareholders' equity, as investors will receive 95% of the company's equity in return for their investment.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100