Mesa Air Group Modifies Loan Agreement with U.S. Treasury and Updates on Merger with Republic Airways

US Treasury Loan Update: Mesa Air Group has amended its Loan Agreement with Jefferies, extending the maturity date to November 28, 2025, reducing the interest rate to 0% for 90 days, and decreasing the principal by $12.3 million, while providing collateral in the form of cash and an aircraft engine.

Merger Update: Mesa Air Group is set to merge with Republic Airways, with a special stockholder meeting scheduled for November 17, 2025, and the merger closing anticipated on November 19, 2025, creating a combined company expected to generate annual revenues between $1.8 billion and $2.0 billion.

Financial Performance: For the first half of 2025, Republic Airways reported approximately $169 million in adjusted EBITDA, while Mesa generated $14 million, totaling $183 million, with expectations of continued strong performance in the second half of the year.

Net Operating Losses (NOL): Mesa has significant federal and state net operating losses totaling approximately $277.6 million and $150.6 million, respectively, which will be factored into the Net Debt Amount calculation at the merger's closing, potentially impacting shareholder value.