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April 20, 2020, 7:23 a.m. EDT

Hawaiian Air parent changes plan for government aid, to borrow more money and issue more warrants

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By Tomi Kilgore

Hawaiian Airlines parent Hawaiian Holdings Inc. /zigman2/quotes/203188135/composite HA +3.23% disclosed Monday that it changed its plans regarding participation in the government's Economic Relief Program under the CARES Act, to receive a larger loan but also provide more warrants to buy the company's stock. The air carrier said it is now seeking an additional 5-year interest-bearing loan of $364 million, with the collateral to be determined later. Hawaiian said that obligates it to issue warrants for the government to buy up to 6.7% of the company's outstanding shares at $11.82 a share, which is 2.7% above Friday's closing price of $11.51. Previously, the company said that under the Payroll Support Program under the CARES Act, it expected to receive just $290 million, of which $57 million would have been an interest-bearing loan that matures in 10 years, which would've obligated the company to issue warrants to buy 1% of the shares outstanding. The new plan requires Hawaiian to maintain employment levels as of March 24 until Sept. 30 not less than 90% of such levels, while the previous plan would have required the company to refrain from involuntary furloughs or reduce their pay or benefits. Hawaiian's stock, which slipped 0.6% in premarket trading, has plunged 60.7% year to date through Friday, while the U.S. Global Jets ETF /zigman2/quotes/207744796/composite JETS +1.21% has tumbled 54.5% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +1.60% has declined 11.0%.

/zigman2/quotes/203188135/composite
US : U.S.: Nasdaq
$ 12.80
+0.40 +3.23%
Volume: 923,389
Sept. 25, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$588.76 million
Rev. per Employee
$391,501
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/zigman2/quotes/207744796/composite
US : U.S.: NYSE Arca
$ 16.76
+0.20 +1.21%
Volume: 2.85M
Sept. 25, 2020 4:00p
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/zigman2/quotes/210599714/realtime
US : S&P US
3,298.46
+51.87 +1.60%
Volume: 0.00
Sept. 25, 2020 5:06p
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