Southwest Airlines Co. (NYSE: LUV) reported that on May 19, 2026, it entered into an amendment and increase joinder to a senior secured term loan credit agreement, adding $1.0 billion of incremental term loans to an existing $500 million term loan facility. The agreement, titled “Increase Joinder Agreement No. 1 and First Amendment to Credit Agreement,” was entered into with participating lenders and BNP Paribas, acting as administrative and collateral agent. It amends Southwest’s original Term Loan Credit Agreement dated March 11, 2026, which had established initial senior secured term loans with an original principal amount of $500 million. After giving effect to the new borrowing, Southwest said the aggregate outstanding principal amount of term loans under the amended credit agreement is $1.5 billion. The newly added $1.0 billion loans are referred to as the “First Incremental Term Loans” and have substantially the same terms as the original term loans, including interest rate structure, prepayment provisions, maturity, representations and warranties, covenants, and events of default. The term loans mature in full on March 11, 2029. Southwest may prepay the loans in whole or in part at any time without premium or penalty, provided it gives at least three business days’ written notice to BNP Paribas as agent. Any amounts prepaid may not be reborrowed. The filing also notes that the amendment revises the uncommitted incremental term loan feature under the original agreement, allowing Southwest to establish up to $1.0 billion of additional incremental term loan commitments from time to time after the effective date of the increase joinder, subject to the terms and conditions of the amended credit agreement. The obligations are secured by certain aircraft and related assets that already served as collateral under the original agreement, along with additional aircraft and related assets added to the collateral pool in connection with the increase. The facility includes a minimum collateral coverage ratio requirement. Southwest may supplement, replace, or remove collateral pool assets if it satisfies applicable conditions, including maintaining the required collateral coverage ratio. The company may also request lien releases on collateral assets if the ratio is satisfied through remaining collateral, loan prepayment, replacement collateral, or a combination of those measures. The company said amounts outstanding under the facility may be accelerated if an event of default occurs. Southwest also clarified that its existing revolving credit facility was not amended as part of this transaction. The current report was filed under Item 1.01, Entry into a Material Definitive Agreement, and Item 2.03, Creation of a Direct Financial Obligation. The report was signed by Tom Doxey, Southwest’s Executive Vice President and Chief Financial Officer.