Alaska to collect nearly US$1b in payroll support
Alaska Air Group, the parent of Alaska Airlines and Horizon Air, will accept US$992m in payroll support and plans to apply for $1.1b in loans to support short-term liquidity under the provisions of the federal CARES Act. The company said it had agreed with the US Treasury Department that $267m of those funds will be provided in the form of a loan that must be repaid. The payroll aid covers 70% of the parent company’s budgeted payroll and benefits costs through Sept 30 as the company endures “a time of near-zero revenue”, Alaska Air Group CE Brad Tilden states. As a condition of the CARES Act, the Treasury will receive the right to buy 847,000 non-voting shares of Alaska Air Group at a price of $31.61 per share, Alaska discloses in a US Securities and Exchange Commission filing. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-04-17/unaligned/alaska-to-collect-nearly-us-1b-in-payroll-support
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Alaska to collect nearly US$1b in payroll support
Alaska Air Group, the parent of Alaska Airlines and Horizon Air, will accept US$992m in payroll support and plans to apply for $1.1b in loans to support short-term liquidity under the provisions of the federal CARES Act. The company said it had agreed with the US Treasury Department that $267m of those funds will be provided in the form of a loan that must be repaid. The payroll aid covers 70% of the parent company’s budgeted payroll and benefits costs through Sept 30 as the company endures “a time of near-zero revenue”, Alaska Air Group CE Brad Tilden states. As a condition of the CARES Act, the Treasury will receive the right to buy 847,000 non-voting shares of Alaska Air Group at a price of $31.61 per share, Alaska discloses in a US Securities and Exchange Commission filing. <br/>
