AUS
NZ
UK
CA
USA
IND
_08_13_2024_21_46_21_877003.jpg)
Headlines
- JetBlue Airways has announced the pricing for its $400 million convertible senior notes, which are due in 2029. An additional $60 million in notes may be available through an over-allotment option.
- The notes can be converted into JetBlue common stock at an initial price of $6.12 per share, reflecting a 27.5% premium over the current stock price.
The proceeds will be used to repurchase existing notes and cover offering-related expenses, with any extra proceeds from additional notes allocated for general corporate uses.
JetBlue Airways Corporation (NASDAQ:JBLU) has announced the pricing for its $400 million aggregate principal amount of 2.50% convertible senior notes due 2029.
The company has also provided an option for the initial purchasers to acquire up to an additional $60 million in notes. The transaction is expected to close around August 16, 2024, contingent on the fulfillment of standard conditions.
The notes are convertible under specific circumstances before June 1, 2029, and at any time up to the second trading day before the maturity date. The initial conversion price is set at approximately $6.12 per share of JetBlue’s common stock, which represents a 27.5% premium over the closing price of $4.80 per share on NASDAQ as of August 12, 2024. Redemption of the notes is not permitted before September 1, 2027. From September 1, 2027, until 45 days before maturity, JetBlue may redeem the notes in whole or in part, depending on certain conditions.
JetBlue plans to use the net proceeds from this offering to repurchase a portion of its 0.50% senior convertible notes due in 2026 and to cover fees and expenses associated with the offering. Any additional proceeds from the exercise of the over-allotment option will be used for general corporate purposes.
The notes will be offered exclusively to individuals believed to be qualified institutional buyers under Rule 144A of the Securities Act of 1933, as amended. They will not be registered under the Securities Act or state securities laws and cannot be offered or sold in the U.S. without proper registration or exemptions.
This announcement contains forward-looking statements covered by safe harbor provisions for forward-looking statements under U.S. securities laws. These statements involve risks and uncertainties and may differ significantly from actual results due to various factors, including market conditions, industry trends, and operational challenges. The company is not obligated to update these forward-looking statements except as required by law. For additional information on the risks and uncertainties, please refer to JetBlue’s SEC filings, including its Quarterly Report on Form 10-Q for the quarter ended June 30, 2024.
