April 24, 2020 / 1:35 AM / a month ago

BRIEF-Alaska Airlines, Horizon Air Announce Receipt Of Payroll Support Program Funds Under Cares Act

April 23 (Reuters) - Alaska Air Group Inc:

* ALASKA AIRLINES AND HORIZON AIR ANNOUNCE RECEIPT OF PAYROLL SUPPORT PROGRAM FUNDS UNDER CARES ACT

* RECEIVED $992 MILLION TO BE USED EXCLUSIVELY TOWARD CONTINUING TO PAY EMPLOYEE SALARIES, WAGES AND BENEFITS

* FUNDING WILL COVER ABOUT 70% OF BUDGETED PAYROLL COSTS FOR BOTH AIRLINES THROUGH SEPT. 30, 2020

* OF $992 MILLION IN PSP FUNDING, $267 MILLION IS IN FORM OF A LOAN AND MUST BE REPAID TO GOVERNMENT WITHIN A 10-YEAR TERM

* ALASKA AIR GROUP- ALASKA AND HORIZON HAVE AGREED TO NO INVOLUNTARY FURLOUGHS AND NO REDUCTIONS TO RATES OF PAY OR BENEFITS THROUGH SEPT. 30, 2020

* TREASURY RECEIVED WARRANTS TO BUY 847,000 NON-VOTING SHARES OF CO’S COMMON STOCK AT A PRICE OF $31.61 A SHARE

* ALASKA AND HORIZON HAVE AGREED TO CONTINUE SUSPENSION OF DIVIDENDS AND SHARE REPURCHASES UNTIL SEPT. 30, 2021

* UNDER THIS PROGRAM, ALASKA AND HORIZON HAVE AGREED TO LIMITS ON EXECUTIVE COMPENSATION THROUGH MARCH 24, 2022

* OF $992 MILLION IN PSP FUNDING, $267 MILLION IS IN FORM OF A LOAN AND MUST BE REPAID TO GOVERNMENT WITHIN A 10-YEAR TERM

* ALASKA ,HORIZON HAVE SEPARATELY APPLIED FOR $1.1 BILLION IN FEDERAL LOAN FUNDING THROUGH SEPARATE PROGRAM UNDER CARES ACT Source text for Eikon: Further company coverage:

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