Wheels Up Experience Inc. ( NYSE: UP ) stock notched its largest single-day gain since June after announcing a new financing arrangement on Monday.
The private aviation company announced that is had issued equipment notes in the aggregate principal amount of $270M via an Enhanced Equipment Trust Certificates loan structure. The equipment notes are secured by a primary lien on selected company-owned aircraft and have a maturity of up to seven years and a coupon of 12%. About $259M in net proceeds are anticipated from these notes.
"These proceeds give us additional financial flexibility to invest in our business as we pursue our goal for positive adjusted EBITDA in 2024," CFO Todd Smith said. "We believe we are in a strong competitive position to use the technology we're deploying and our improving operational capability to provide an unparalleled customer experience in private aviation."
Shares of Wheels Up ( UP ) surged 16.6% near the midpoint of Monday’s trading, trending toward the best day for the stock since Goldman Sachs outlined a bull case for the stock in mid-June . Nonetheless, the stock remains down about 83% in the past year.
Read more on the SeekingAlpha Quant team’s warnings on the stock .
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Wheels up Experience stock soars on new financing agreement