Mesa Air Group amended its loan and guarantee agreement with Jefferies Capital Services on Oct 31 2025. The amendment extends the loan maturity to Nov 28 2025, with a 30‑day extension option, reduces the interest rate to 0 % for 90 days, and waives collateral coverage ratio and liquidity tests through the maturity date. The company deposited $31.9 million in cash and pledged an aircraft engine as collateral.
The amendment supports Mesa’s pending all‑stock merger with Republic Airways, announced April 7 2025. The merger is expected to close on Nov 19 2025 after a shareholder vote on Nov 17. The combined company will operate under the Republic Airways name, trade as RJET on NASDAQ, and generate annual revenue of $1.8–$2.0 billion. Mesa shareholders will own 6–12 % of the combined entity, and Mesa will contribute no debt.
Mesa’s financial profile includes a $121.5 million debt burden, a current ratio of 0.76, negative free cash flow yield of –62 %, negative net margin of –43.66 %, and a negative debt‑to‑equity ratio of –2.94. The company holds significant net operating losses totaling $428 million (federal $277.6 million, state $150.6 million), underscoring the need for the loan amendment and merger to strengthen liquidity and the balance sheet.
Mesa continues to operate all flights as United Express. United Airlines holds a 10 % stake in Mesa, acquired in January 2023 for $10.5 million, and has a 10‑year capacity purchase agreement for Mesa’s 60 Embraer 175 aircraft. The partnership with United replaces a 30‑year agreement with American Airlines and supports Mesa’s network expansion.
By securing additional collateral and reinforcing its loan agreement, Mesa aims to maintain financial flexibility while navigating the merger and expanding its partnership with United Airlines. The amendment underscores the company’s focus on preserving liquidity as it pursues strategic growth.
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