Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 350

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 19
Chunk 350
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aria.

The notes have a five-yearmaturity annual reduction of Ps. 187,500,
Ps. 750,000and Ps. 562,500(US$9.3million, US$37million and US$27.8million, based on an exchange rate of Ps. 20.27to US$1on December 31,
2024) in 2026, 2027 and 2028, respectively, with a floating one-month coupon rate referenced to TIIE 28 plus215basis points spread.
The notes start amortizing at the end of the third year.

The asset-backed trust notes structure operates on specific
rules and provides a DSCR “ Debt Service Coverage Ratio,” which is computed by comparing the Mexican Peso collections over
the previous six monthsto the next six monthsof debt service. In general, retention of funds does not exist if the ratio exceeds2.5times. Amortization on the asset-backed trust notes began in July of 2021 for the first issuance, for the second issuance
began in November of 2023 and for the third issuance will begin in October 2026. In addition, early amortization applies if:

  The Debt Coverage Ratio is less than 1.75x on any of the determination dates;  

  ii)      An event of retention is not covered in a period of 90 consecutive days;  

  iii)      The debt service reserve account of any series maintains on deposit an amount                                                           

  iv)      Insolvency event of Concesionaria;  

  The update of a new insolvency event in relation to the Concesionaria; and  

  vi)      Updating a new event of default.  

In the event of default, the Trustee will refrain from delivering
any amount that it would otherwise be required to deliver to Concesionaria and will dedicate such cash flow to amortize the principal
of the trust notes (“ CEBUR”).

As of December 31, 2024, the Company was in compliance with the
conditions of the asset-backed trusted notes.

In December 2021, the Company renewed its working capital
facility with Banco Sabadell S. A., Institución de Banca Multiple (“ Sabadell”) in Mexican pesos. The facility matured
in December 2023.

The “ Sabadell” working capital facility had the
following covenant:

i) Joint obligor (Concesionaria) must represent85% of EBIT