MUFG Secures $75 Million Financing for Sun Country Airlines to Boost Growth

Mitsubishi UFJ Financial Group (MUFG), a prominent player in the financial services sector, has successfully closed a significant financing deal worth $75 million for Sun Country Airlines, Inc. This arrangement involves a senior secured revolving credit facility (RCF), which is specifically designed to provide Sun Country with the necessary liquidity to support its general corporate activities.

In this deal, MUFG took an active role as the Sole Structuring Agent and one of the Joint Lead Arrangers, committing $37.5 million towards this credit facility. The other half, also amounting to $37.5 million, has been provided by Sumitomo Mitsui Banking Corporation, which served as the additional Joint Lead Arranger. Notably, this new facility replaces the airline's existing $25 million revolving credit line, enabling Sun Country to substantially increase its liquidity and execute its operational strategies more effectively.

The structure of this financing deal upon approval allows Sun Country to secure funds against various assets, including aircraft, engines, spare parts, inventory, receivables, and cash. This increase in financial flexibility is crucial for the airline as it navigates a competitive aviation market, especially as it looks into new opportunities and growth avenues.

Dave Davis, President and CFO of Sun Country Airlines, expressed enthusiasm about the new credit facility, stating that it equips the airline with the financial means to explore potential growth avenues as opportunities present themselves. He emphasized the airline’s commitment to advancing its unique business model, stating, “We greatly appreciate the leadership and participation of MUFG, one of our key partners.” Davis's statements encapsulate the positive outlook both companies share regarding this new chapter of collaboration.

Benoist de Vimal, who heads Aviation Originations for MUFG in the Americas, shared similar sentiments, expressing excitement about closing this essential transaction with Sun Country. He acknowledged the trust the airline has placed in MUFG and mentioned eagerness in further expanding this relationship. This partnership underscored MUFG’s strategic focus on supporting the aviation sector, which is amid recovery and growth phases following global disruptions.

MUFG, with its long-standing expertise and deep-rooted presence in the financial sector, maintains a commitment to fostering lasting relationships with its clients. As one of the largest financial entities in the world, MUFG is dedicated to being the most trusted financial institution globally, integrating operations and achieving sustainable growth through collaborative efforts.

In the backdrop of this financing deal lies the story of Sun Country Airlines, a Minneapolis-based hybrid low-cost carrier. The airline prides itself on connecting travelers with both people they cherish and destinations that inspire, all while fostering lifelong memories and unforgettable experiences. Through its dynamic utilization of shared resources across scheduled service, charter, and cargo sectors, Sun Country continues to solidify its footprint in the aviation industry.

The airline aims mainly at leisure travels and opportunities in cargo services, which also include fulfilling contracts with major partners such as Amazon, thereby ensuring a broad reach across the United States and extending to Mexican, Central American, Canadian, and Caribbean destinations.

Moving forward, with the backing of MUFG, Sun Country Airlines is well-poised to explore innovative pathways to enhance its operations and service offerings while maintaining a sharp focus on delivering value to its customers and stakeholders. As the airline industry evolves, it will be exciting to see how this partnership develops and how both entities can leverage their strengths for a promising future.