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The list of U.S. Treasury questions for airlines seeking bailout cash

U.S. Treasury officials have asked airlines seeking money from a $25 billion fund for payroll support to provide detailed information on their capital structure, liquidity and collateral, people briefed on the matter said.

Below is a list of the details Treasury has requested, as explained to Reuters by one of the people:

CAPITAL STRUCTURE
– Breakout of all secured and unsecured debt

– An overview of any financing completed in 2020, including applicable terms

– A detailed schedule of debt maturity in 2020 and any amortization

– Any prohibitions on issuing any unsecured or secured debt contained in existing agreements or indentures

– Permitted debt and permitted lien baskets in dollar terms for incremental secured and unsecured indebtedness

– Collateral currently used to support outstanding indebtedness

LIQUIDITY
– Current liquidity including cash, marketable securities, revolver ability and delayed draw term loan availability

– Expectations on when they will run out of liquidity

– Assumptions around daily cash burn, cost cuts, debt maturity, interest expense and amortization

– Best estimate for projected wages and benefits for April 1 to Sept. 30 given current operating assumptions for that period

COLLATERAL
– Overview of loyalty program

– Details on whether the loyalty program is encumbered or unencumbered

– Estimated value of the loyalty program

– Historical cash flow of the loyalty program

– An overview of all unencumbered aircraft, engines and spare parts

– The estimated value of the unencumbered assets broken down by asset class

– The estimated available financing of unencumbered assets

– An overview of any additional unencumbered collateral