JetBlue Airways has announced that it intends to offer US$650 million aggregate principal amount of convertible senior notes due 2026, subject to market and other conditions. The notes are being offered only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A (the offering) under the Securities Act of 1933, as amended (the Securities Act). JetBlue also expects to grant the initial purchasers of the notes an option to purchase, within a 13-day period from, and including, the date of original issuance of the notes, up to an additional US$100 million aggregate principal amount of the notes. JetBlue intends to use the net proceeds from the offering for general corporate purposes, which may include the repayment of indebtedness.
The initial conversion price, interest rate and certain other terms of the notes will be determined by negotiations between JetBlue and the initial purchasers. The notes will mature on April 1, 2026, unless repurchased, redeemed or converted in accordance with their terms prior to maturity. The notes will also be redeemable, in whole or in part, for cash at JetBlue’s option at any time, and from time to time, on or after April 1, 2024 in certain circumstances.
