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Sun Country Airlines Holdings, Inc. (NASDAQ:SNCY), a regional airline with a market capitalization of $630 million and a perfect Piotroski Score of 9 according to InvestingPro, announced Wednesday that its wholly owned subsidiary, Sun Country Inc., entered into a $108 million term loan facility agreement with UMB Bank, National Association, acting as administrative agent and mortgagee. The agreement, finalized on September 26, will provide funding in two parts, with the second borrowing scheduled to occur on or before December 19, 2025.
According to a press release statement, the proceeds from the new loan facility will be used to repay Sun Country’s existing term loan facility dated March 21, 2023, refinance five Boeing 737-900 aircraft owned by the company, and support general corporate purposes. Three of the aircraft are currently leased to an unaffiliated airline, with lease expirations set for November 30, 2025, September 30, 2026, and November 30, 2026. After the leases end, these aircraft will join the Sun Country fleet.
The obligations under the new facility are primarily secured by the five aircraft and, while they remain leased, by the associated leases, maintenance reserve amounts, and security deposits. The loans carry a fixed annual interest rate of 5.98%. Quarterly amortization payments will begin on or about December 22, 2025, with the remaining balance due in a single payment at maturity on September 22, 2032.
The loan agreement includes mandatory prepayment provisions, which may require early repayment in certain circumstances, such as the sale of collateral. Sun Country may also prepay the loan at any time, subject to specific conditions. The facility does not limit the amount of unsecured debt the company or its subsidiaries may incur, nor does it restrict debt secured by assets other than those pledged as collateral for this loan.
As a result of this new arrangement, Sun Country applied proceeds from the term loan facility to fully repay the previous term loan. The information in this article is based on a statement from the company’s SEC filing.
In other recent news, Sun Country Airlines reported its Q2 2025 earnings, exceeding analyst expectations with an earnings per share (EPS) of $0.14, compared to the forecasted $0.11. The airline’s total revenue for the quarter reached $263.6 million, slightly above the anticipated $255.98 million. In addition to the earnings news, Sun Country Airlines announced the appointment of D. Torque Zubeck as Senior Vice President and Chief Financial Officer, effective September 2, 2025. Zubeck brings over 30 years of finance experience, including previous roles at Mesa Airlines and Alaska Airlines. Furthermore, the company appointed Wendy Schoppert to its Board of Directors, effective October 1, 2025. Schoppert holds board positions at several other companies, including The ODP Corporation/Office Depot. In analyst updates, TD Cowen reiterated its Buy rating and maintained a $20 price target for Sun Country Airlines, citing the airline’s resilient business model and advantageous positioning among low-cost carriers.
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