Hawaiian Airlines, Inc. Announces Pricing and Upsizing of Offering by Loyalty and Brand Subsidiaries of Senior Secured Notes due 2026

Rhea-AI Summary

Hawaiian Airlines, Inc. has announced the upsizing of its unregistered offering to $1.2 billion in 5.75% Senior Secured Notes due 2026 from an initial $800 million. The offering, scheduled for February 4, 2021, is directed towards qualified institutional buyers and non-U.S. persons. These Notes will not be registered under the Securities Act and will not have registration rights. This step is part of Hawaiian Airlines' strategic financial management amid ongoing challenges due to the COVID-19 pandemic.

Positive

• Upsizing the offering to $1.2 billion indicates strong market demand.

Negative

• The offering is unregistered, limiting buyer protections.
• The company continues to navigate financial uncertainty due to COVID-19.

HONOLULU, Jan. 28, 2021 /PRNewswire/ -- Hawaiian Airlines, Inc. (the "Company"), a wholly-owned subsidiary of Hawaiian Holdings, Inc. (Nasdaq: HA), today announced the pricing and upsizing of the previously announced unregistered offering by Hawaiian Brand Intellectual Property, Ltd. (the "Brand Issuer") and HawaiianMiles Loyalty, Ltd., (the "Loyalty Issuer" and, together with the Brand Issuer, the "Issuers"), each an indirect wholly-owned subsidiary of the Company.

The Issuers are expected to issue an aggregate of $1.2 billion in principal amount of 5.75% Senior Secured Notes due 2026 (the "Notes") on February 4, 2021, subject to customary closing conditions. The offering was upsized to $1.2 billion from the originally announced aggregate principal amount of $800 million.

The Notes will be offered and sold only to persons reasonably believed to be qualified institutional buyers, as defined in, and in reliance on Rule 144A under the Securities Act of 1933, as amended (the "Securities Act") and to non-U.S. persons in offshore transactions outside the United States in reliance on Regulation S under the Securities Act.  The Notes will not be registered under the Securities Act or any other securities laws of any jurisdiction and will not have the benefit of any exchange offer or other registration rights. The Notes may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the Notes nor shall there be any sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful. This news release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.

About Hawaiian Airlines

Hawaiian Airlines, Inc. is a subsidiary of Hawaiian Holdings, Inc. (NASDAQ: HA). Additional information is available at HawaiianAirlines.com. Follow Hawaiian's Twitter updates (@HawaiianAir), become a fan on Facebook (Hawaiian Airlines), and follow us on Instagram (hawaiianairlines). For career postings and updates, follow Hawaiian's LinkedIn page.

For media inquiries, please visit Hawaiian Airlines' online newsroom.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company's current views with respect to certain current and future events and financial performance.  Such forward-looking statements include, without limitation, the Company's business plans, the offering of the Notes, and statements as to other matters that do not relate strictly to historical facts or statements of assumptions underlying any of the foregoing.  Words such as "expects," "anticipates," "projects," "intends," "plans," "believes," "estimates," variations of such words, and similar expressions are also intended to identify such forward-looking statements.  These forward-looking statements are and will be subject to many risks, uncertainties and assumptions relating to the Company's operations and business environment, all of which may cause the Company's actual results to be materially different from any future results, expressed or implied, in these forward-looking statements.  These risks and uncertainties include, without limitation, the continuing and developing effects of the spread of COVID-19 on the Company's business operations and financial condition; whether the Company's cost-cutting plans related to the COVID-19 pandemic will be effective or sufficient; the duration of government-mandated and other restrictions on travel; the full effect that the quarantine, restrictions on travel and other measures to limit the spread of COVID-19 will have on demand for air travel in the markets in which the Company operates; fluctuations and the extent of declining demand for air transportation in the markets in which the Company operates; the Company's dependence on the tourism industry; the Company's ability to generate sufficient cash and manage its available cash; the Company's ability to accurately forecast economic volatility; macroeconomic developments; political developments; the price and availability of aircraft fuel; labor negotiations; regulatory determinations and related developments; competitive pressures, including the impact of industry capacity between North America and Hawai'i and interisland; changes in the Company's future capital needs; and foreign currency exchange rate fluctuations.

The risks, uncertainties and assumptions referred to above that could cause the Company's results to differ materially from the results expressed or implied by such forward-looking statements also include the risks, uncertainties and assumptions discussed from time to time in the Company's other public filings and public announcements, including the Company's Annual Report on Form 10-K and the Company's Quarterly Reports on Form 10-Q, as well as other documents that may be filed by the Company from time to time with the Securities and Exchange Commission.  All forward-looking statements included in this document are based on information available to the Company on the date hereof.  The Company does not undertake to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date hereof even if experience or future changes make it clear that any projected results expressed or implied herein will not be realized. 

 

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SOURCE Hawaiian Airlines, Inc.

FAQ

What is the amount of senior secured notes offered by Hawaiian Airlines (HA)?

Hawaiian Airlines is offering $1.2 billion in senior secured notes.

When is the offering of the notes due?

The notes are due in 2026.

Why did Hawaiian Airlines increase the size of its note offering?

The offering was upsized due to strong demand from qualified institutional buyers.

What are the interest rates on the Hawaiian Airlines notes?

The notes carry an interest rate of 5.75%.

Is the offering of notes registered with the SEC?

No, the offering is unregistered and does not provide registration rights.