JetBlue Announces Pricing Of $400 Mln Of 2.50% Convertible Senior Notes Due 2029

(RTTNews) - JetBlue Airways Corp. (JBLU) announced the pricing of $400 million aggregate principal amount of its 2.50% convertible senior notes due 2029.

The airline granted the initial purchasers of the notes an option to purchase up to an additional $60 million aggregate principal amount of the notes.

The company expects to close the offering on or about August 16, 2024.

In certain circumstances prior to June 1, 2029 and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date, the notes may be converted at an initial conversion price of about $6.12 per share of JetBlue's common stock, representing about a 27.5% conversion premium over the closing price of $4.80 per share on The NASDAQ Global Select Market on August 12, 2024, the company said.

JetBlue said it may not redeem the notes prior to September 1, 2027. On or after September 1, 2027 and until, and including, the 45th scheduled trading day before the maturity date, JetBlue may, at its option, redeem all or part of the notes, under certain circumstances.

The company plans to use the net proceeds from the offering to repurchase a portion of its existing 0.50% senior convertible notes due 2026 and to pay fees and expenses related to the offering. Any net proceeds received if the initial purchasers exercise their option to purchase additional notes will be used for general corporate purposes.