Southwest Airlines enters new $2B revolving credit facility, replaces 2016 facility

SOUTHWEST AIRLINES CO

New $2B five-year revolving credit facility signed Aug 10, 2026; maturity Aug 10, 2031, with two optional one-year extensions.
Accordion feature allows increase to $3B subject to incremental commitments; no amounts outstanding at signing.
Replaces prior revolving credit facility dated Aug 3, 2016 (expiry Aug 4, 2028); prior facility terminated.
Interest: Term SOFR + 0.875%-1.625% margin or ABR + 0.000%-0.625%; SOFR floor 1.00%.
Covenants: Collateral Coverage Test (aircraft pool ≥1.25x commitments) and Coverage Ratio 1.25:1 (option to reduce to 0.80:1 for two quarters).

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