Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 346

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 19
Chunk 346
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 of its aircraft
through a revolving facility. For purposes of financing these pre-delivery payments, an Irish SPV was created whereby the Company assigned
its rights and obligations under the Airbus Purchase Agreement with Airbus S. A. S. (“ Airbus”), including its obligation to
make pre-delivery payments.

The “ Runway Eleven Lender LLC” does not include
financial covenants or financial obligations.

On June 8, 2022, the Company entered into a pre-delivery payment
financing with Santander/Bancomext at an annual interest rate of SOFR plus298basis points, for the acquisition of its aircraft through
a revolving facility. For purposes of financing these pre-delivery payments, a Mexican trust was created whereby the Company assigned
its rights and obligations under the Airbus Purchase Agreement with Airbus S. A. S. (“ Airbus”), including its obligation to
make pre-delivery payments to the Mexican trust. The Company guaranteed the obligations of the Mexican trusts under the financing agreement
(CIBanco, S. A. Institución de Banca Múltiple) Trust 3853. A feature of this financing is that it will incur an additional fivebasis points if the sustainability goals are not met. On August 31, 2023, the interest rate increased by fivebasis points, with
the possibility of mitigating the additional rate if the objectives are met in the upcoming years.

In August 2024, the Company signed an amendment to increase
the facility amount and to include the predelivery payments for additional aircraft, with a new maturity date onDecember 31, 2028.

The “ Santander/Bancomext” loan agreement provides
for certain covenants, including limits to the ability to, among others:

  Incur debt above a specified debt basket unless certain financial ratios are met.  

  ii)      Create liens.  

  iii)      Merge with or acquire any other entity without the previous authorization of the Banks.  

  iv)      Dispose of certain assets.  

  Declare and pay dividends or make distributions on the Company’s share capital.  

As of December 31, 2024 and 2023, the Company complied
with the covenants under the mentioned loan agreement.

As of December 31, 2024, the outstanding balance of the
financial debt related to finance pre-delivery payments of aircraft amounts toUS$ 360,982, the Company
covers this obligation through the sale and the collection made by the transaction