08:22 AM EDT, 03/12/2026 (MT Newswires) -- Southwest Airlines ( LUV ) said Thursday that it has secured a $500 million senior secured term loan facility from BNP Paribas.

The airline said in a regulatory filing that it entered the credit agreement on Wednesday and drew the full amount at closing. The loan matures on March 11, 2029, the company said.

The facility is secured by certain aircraft and related assets. Southwest ( LUV ) can prepay the loan at any time without penalty with three business days' notice, the company said.

Interest is based on either Term SOFR plus a margin of 1.10% per annum or an alternate base rate plus a margin of 0.10% per annum.