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Get filing alertsSouthwest replaces credit facility with $2B five-year revolver at lower rates
Filed August 12, 2026 · Period ending August 10, 2026 · ~1 min read
Key Changes
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high
Terminated 2016 revolving credit facility (scheduled to expire Aug 2028) and replaced it with new $2B five-year facility maturing Aug 2031, with two optional one-year extensions.
Item 1.02 verify on EDGAR → -
medium
New facility carries Term SOFR + 0.875%–1.625% margin (1.00% SOFR floor) or Alternate Base Rate + 0.000%–0.625%, based on debt rating. No amounts drawn at closing.
Item 1.02 verify on EDGAR → -
medium
Facility includes accordion feature allowing expansion to $3B subject to incremental lender commitments.
Item 1.02 verify on EDGAR → -
medium
Requires 1.25x Coverage Ratio and lien-free aircraft pool valued at 1.25x commitment, with one-time option to reduce ratio to 0.80x for two quarters.
Item 1.02 verify on EDGAR →
Summary
Southwest Airlines refinanced its revolving credit facility, terminating the 2016 agreement nearly two years before its August 2028 expiration and replacing it with a new $2 billion five-year facility. The new revolver matures in August 2031 with options for two one-year extensions, and carries interest rates tied to the company's debt rating—Term SOFR plus 0.875% to 1.625% or Alternate Base Rate plus 0.000% to 0.625%. The facility remains undrawn at closing.
The refinancing extends Southwest's liquidity runway and includes an accordion feature allowing expansion to $3 billion subject to obtaining additional lender commitments. Financial covenants require maintaining a 1.25x Coverage Ratio and a lien-free aircraft pool valued at 1.25 times the commitment, though the company retains a one-time option to reduce the ratio requirement to 0.80x for two consecutive quarters if needed. The early refinancing suggests Southwest is taking advantage of current credit market conditions to lock in extended maturity and maintain financial flexibility.
Section-by-Section Diff
Event · Item 2.03 — Creation of a Direct Financial Obligation
Item 2.03 also reports this as a direct financial obligation (body incorporates the primary Item by reference).
Added in current filing · verify on EDGAR →
Item 2.03 is incorporated by reference into this Item 1.01.
The 8-K includes a labeled Item 2.03 section. Its body incorporates the primary Item (typically 1.01) by reference rather than restating terms — do not treat that thinness as 'Item 2.03 absent.' The company is signaling creation of a direct financial obligation alongside the agreement disclosure; keep Item 2.03 visible in the report.
Event · Item 1.01 — Entry into a Material Definitive Agreement
Southwest Airlines entered into a material definitive agreement on August 10, 2026.
Added in current filing · verify on EDGAR →
Item 1.01 Entry into a Material Definitive Agreement.
Southwest Airlines disclosed entry into a material definitive agreement on August 10, 2026. The filing does not provide details about the nature, terms, or parties to the agreement beyond the Item 1.01 heading. The incomplete disclosure suggests the full agreement details may be provided in exhibits or subsequent filings.
Event · Item 1.02 — Termination of a Material Definitive Agreement
Southwest Airlines replaced its 2016 revolving credit facility with a new $2 billion five-year facility, featuring lower interest rates and extended maturity.
Added in current filing · verify on EDGAR →
As of August 10, 2026, in connection with the entry by Southwest Airlines Co. (the “Company”) into the new revolving credit agreement described in Item 2.03 hereof, the Company terminated the revolving credit facility dated as of August 3, 2016, as amended, with a syndicate of lenders. The prior credit facility would have expired August 4, 2028.
Southwest terminated its existing revolving credit facility from 2016, which had been scheduled to expire in August 2028. This termination occurred in connection with entering into a new replacement facility.
Added in current filing · verify on EDGAR →
On August 10, 2026, the Company entered into a new $2 billion five-year revolving credit facility agreement (the “Revolving Credit Agreement”) with a syndicate of lenders identified in the Revolving Credit Agreement. JPMorgan Chase Bank, N.A. and Citibank, N.A. act as co-administrative agents and JPMorgan Chase Bank, N.A. acts as paying agent under the Revolving Credit Agreement. The Revolving Credit Agreement has an uncommitted accordion feature that would allow the Company, subject to, among other things, the procurement of incremental commitments, to increase the size of the facility to $3 billion.
Southwest established a new $2 billion five-year revolving credit facility with JPMorgan Chase and Citibank as co-administrative agents. The facility includes an accordion feature allowing expansion to $3 billion subject to obtaining additional lender commitments. As of the filing date, no amounts are drawn under the facility.
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Figures/quotes linked to EDGAR · Narrative written by AI · Aug 13, 2026 · How we verify