JetBlue Announces $400 Million Convertible Senior Notes Offering
JetBlue Airways (NASDAQ: JBLU) has announced its intention to offer $400 million in convertible senior notes due 2029. The company may also grant initial purchasers an option to buy up to an additional $60 million in notes within 13 days of the original issuance. JetBlue plans to use the net proceeds to repurchase a portion of their existing 0.50% senior convertible notes due 2026 and cover related fees and expenses. Any remaining funds will be allocated for general corporate purposes.
The offering is to qualified institutional buyers under Rule 144A of the Securities Act of 1933. The notes and any common stock issuable upon conversion will not be registered under the Securities Act or state securities laws, restricting their sale or offer without registration or applicable exemption.
JetBlue Airways (NASDAQ: JBLU) ha annunciato la sua intenzione di offrire 400 milioni di dollari in note senior convertibili in scadenza nel 2029. L'azienda potrebbe anche concedere ai compratori iniziali un'opzione per acquistare fino a ulteriori 60 milioni di dollari in note entro 13 giorni dall'emissione originale. JetBlue prevede di utilizzare i proventi netti per riacquistare una parte delle loro esistenti note senior convertibili dello 0,50% in scadenza nel 2026 e coprire le spese e i costi correlati. I fondi rimanenti saranno destinati a scopi aziendali generali.
Offerta riservata ai compratori istituzionali qualificati ai sensi della Regola 144A del Securities Act del 1933. Le note e qualsiasi azione ordinaria emessa al momento della conversione non saranno registrate ai sensi del Securities Act o delle leggi statali sui titoli, limitando la loro vendita o offerta senza registrazione o esenzione applicabile.
JetBlue Airways (NASDAQ: JBLU) ha anunciado su intención de ofrecer 400 millones de dólares en notas senior convertibles con vencimiento en 2029. La compañía también podría otorgar a los compradores iniciales la opción de comprar hasta 60 millones de dólares adicionales en notas dentro de los 13 días posteriores a la emisión original. JetBlue planea utilizar los ingresos netos para recomprar una parte de sus notas senior convertibles existentes al 0,50% con vencimiento en 2026 y cubrir honorarios y gastos relacionados. Los fondos restantes se destinarán a fines corporativos generales.
La oferta está dirigida a compradores institucionales calificados bajo la Regla 144A de la Ley de Valores de 1933. Las notas y cualquier acción común que se emita al convertir no estarán registradas bajo la Ley de Valores o las leyes estatales de valores, restringiendo su venta u oferta sin registro o exención aplicable.
제트블루 항공사 (NASDAQ: JBLU)는 2029년 만기 전환 가능 고위험 채권 4억 달러 발행 의사를 발표했습니다. 회사는 또한 초기 구매자에게 원래 발행일로부터 13일 이내에 6000만 달러의 추가 채권을 구매할 수 있는 옵션을 줄 수 있습니다. 제트블루는 순수익을 사용하여 2026년 만기 기존 0.50% 전환 가능 고위험 채권 일부를 재매입하고 관련 수수료 및 비용을 충당할 계획입니다. 나머지 자금은 일반 기업 용도로 배정됩니다.
본 공모는 1933년 증권법의 144A 조항에 따라 자격을 갖춘 기관 투자자에게 제공됩니다. 채권 및 전환 시 발행되는 일반 주식은 증권법 또는 주 증권법에 따라 등록되지 않으므로 등록이나 적용 가능한 면허 없이 판매 또는 제공이 제한됩니다.
JetBlue Airways (NASDAQ: JBLU) a annoncé son intention d'offrir 400 millions de dollars en obligations senior convertibles arrivant à échéance en 2029. La société pourrait également accorder aux acheteurs initiaux une option d'achat de jusqu'à 60 millions de dollars d'obligations supplémentaires dans les 13 jours suivant l'émission initiale. JetBlue prévoit d'utiliser les produits nets pour racheter une partie de ses obligations senior convertibles existantes à 0,50% arrivant à échéance en 2026 et couvrir les frais et dépenses associés. Les fonds restants seront affectés à des fins d'entreprise générales.
L'offre est destinée aux acheteurs institutionnels qualifiés selon la règle 144A de la Securities Act de 1933. Les obligations et les actions ordinaires pouvant être émises lors de la conversion ne seront pas enregistrées en vertu de la Securities Act ou des lois sur les valeurs mobilières des États, ce qui limite leur vente ou offre sans enregistrement ou exemption applicable.
JetBlue Airways (NASDAQ: JBLU) hat seine Absicht bekannt gegeben, 400 Millionen Dollar an nachrangigen wandelbaren Anleihen mit Fälligkeit im Jahr 2029 anzubieten. Das Unternehmen könnte den ursprünglichen Käufern auch die Option gewähren, innerhalb von 13 Tagen nach der ursprünglichen Ausgabe bis zu zusätzlich 60 Millionen Dollar Anleihen zu kaufen. JetBlue plant, die Nettomittel zu verwenden, um einen Teil seiner bestehenden 0,50% nachrangigen wandelbaren Anleihen mit Fälligkeit 2026 zurückzukaufen und die damit verbundenen Gebühren und Kosten zu decken. Etwaige verbleibenden Mittel werden für allgemeine Unternehmenszwecke verwendet.
Das Angebot richtet sich an qualifizierte institutionelle Käufer gemäß Regel 144A des Securities Act von 1933. Die Anleihen und alle Stammaktien, die bei der Umwandlung ausgegeben werden, werden nicht nach dem Securities Act oder den staatlichen Wertpapiergesetzen registriert, was ihren Verkauf oder ihr Angebot ohne Registrierung oder geltende Ausnahme einschränkt.
- Potential to raise up to $460 million through convertible senior notes offering
- Opportunity to refinance existing debt with potentially more favorable terms
- Strengthening of financial position through debt restructuring
- Increase in long-term debt obligations
- Potential dilution of existing shareholders if notes are converted to common stock
- Additional interest expenses may impact future profitability
Insights
JetBlue's $400 million convertible senior notes offering is a strategic move to refinance existing debt. This action could potentially improve the company's debt profile by extending maturities and possibly securing more favorable terms. However, it's important to note that this doesn't reduce overall debt levels. The additional $60 million option for initial purchasers provides flexibility but could increase the total debt burden if exercised. The use of proceeds to repurchase existing 2026 notes suggests a proactive approach to debt management. For investors, this move signals JetBlue's focus on optimizing its capital structure, but it's essential to monitor how this impacts the company's leverage ratios and interest expenses going forward.
The timing of JetBlue's convertible notes offering is intriguing, considering the current market conditions in the airline industry. With post-pandemic travel demand recovering, this move could be seen as a way to strengthen JetBlue's financial position for potential growth opportunities or to weather any future uncertainties. The offering to "qualified institutional buyers" suggests a targeted approach to sophisticated investors, which could indicate confidence in the company's prospects. However, the potential dilution effect on existing shareholders if these notes are converted to common stock is a factor to consider. Investors should closely watch how this offering impacts JetBlue's market perception and stock performance in the short term, as well as its competitive positioning in the long term.
NEW YORK, N.Y., Aug. 12, 2024 (GLOBE NEWSWIRE) -- JetBlue Airways Corporation (NASDAQ: JBLU) (“JetBlue”) today announced that it intends to offer (the “offering”)
This press release does not constitute an offer to sell or a solicitation of an offer to buy the notes or the shares of JetBlue’s common stock issuable upon conversion of the notes, and shall not constitute an offer, solicitation or sale in any jurisdiction in which, such an offer, solicitation or sale would be unlawful prior to the registration and qualification under the securities laws of such state or jurisdiction.
The notes will only be offered to persons reasonably believed to be “qualified institutional buyers” in an offering exempt from registration in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The notes proposed to be offered and any shares of JetBlue’s common stock issuable upon conversion of the notes will not be registered under the Securities Act or any state securities laws, and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of the Securities Act or any applicable state securities laws.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained in this press release may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “expects,” “plans,” “intends,” “anticipates,” “indicates,” “remains,” “believes,” “estimates,” “forecast,” “guidance,” “outlook,” “may,” “will,” “should,” “seeks,” “goals,” “targets” or the negative of these terms or other similar expressions. Forward-looking statements include, without limitation, statements related to the proposed terms of the offering described herein, the completion, timing, and size of the proposed offering, and the anticipated use of proceeds from the offering. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed, or assured. Forward looking statements contained in this press release include, without limitation, statements regarding JetBlue’s outlook and future results of operations and financial position, including potential EBIT improvement, JetBlue’s business strategy and plans for future operations, including JetBlue’s refreshed standalone strategies, such as JetForward, JetBlue’s sustainability initiatives, the impact of industry or other macroeconomic trends affecting JetBlue’s business, seasonality, and JetBlue’s expectations regarding the wind-down of JetBlue’s Northeast Alliance with American Airlines Group Inc. (the “NEA”) and the related impact on JetBlue’s business, financial condition and results of operations. Forward-looking statements involve risks, uncertainties and assumptions, and are based on information currently available to JetBlue. Actual results may differ materially from those expressed in the forward-looking statements due to many factors, including, without limitation, the risk associated with the execution of JetBlue’s strategic operating plans in the near-term and long-term; JetBlue’s extremely competitive industry; risks related to the long-term nature of JetBlue’s fleet order book; volatility in fuel prices and availability of fuel; increased maintenance costs associated with fleet age; costs associated with salaries, wages and benefits; risks associated with a potential material reduction in the rate of interchange reimbursement fees; risks associated with doing business internationally; JetBlue’s reliance on high daily aircraft utilization; JetBlue’s dependence on the New York metropolitan market; risks associated with extended interruptions or disruptions in service at JetBlue’s focus cities; risks associated with airport expenses; risks associated with seasonality and weather; JetBlue’s reliance on a limited number of suppliers for JetBlue’s aircraft, engines, and JetBlue’s Fly-Fi® product; risks related to new or increased tariffs imposed on commercial aircraft and related parts imported from outside the United States; the outcome of legal proceedings with respect to the NEA and JetBlue’s-wind down of the NEA; risks associated with cybersecurity and privacy, including information security breaches; heightened regulatory requirements concerning data security compliance; risks associated with reliance on, and potential failure of, automated systems to operate JetBlue’s business; JetBlue’s inability to attract and retain qualified crewmembers; JetBlue’s being subject to potential unionization, work stoppages, slowdowns or increased labor costs; reputational and business risk from an accident or incident involving JetBlue’s aircraft; risks associated with damage to JetBlue’s reputation and the JetBlue brand name; JetBlue’s significant amount of fixed obligations and the ability to service such obligations; JetBlue’s substantial indebtedness and impact on JetBlue’s ability to meet future financing needs; financial risks associated with credit card processors; risks associated with seeking short-term additional financing liquidity; failure to realize the full value of intangible or long-lived assets, causing JetBlue to record impairments; risks associated with disease outbreaks or environmental disasters affecting travel behavior; compliance with environmental laws and regulations, which may cause JetBlue to incur substantial costs; the impacts of federal budget constraints or federally imposed furloughs; impact of global climate change and legal, regulatory or market response to such change; increasing attention to, and evolving expectations regarding, environmental, social and governance matters; changes in government regulations in JetBlue’s industry; acts of war or terrorism; and changes in global economic conditions or an economic downturn leading to a continuing or accelerated decrease in demand for air travel. It is routine for JetBlue’s internal projections and expectations to change as the year or each quarter in the year progresses, and therefore it should be clearly understood that the internal projections, beliefs, and assumptions upon which we base JetBlue’s expectations may change prior to the end of each quarter or year.
Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements. You should understand that many important factors, in addition to those discussed or incorporated by reference in this press release, could cause JetBlue’s results to differ materially from those expressed in the forward-looking statements. Further information concerning these and other factors is contained in JetBlue’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including but not limited to in JetBlue’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, as may be updated by JetBlue’s other SEC filings. In light of these risks and uncertainties, the forward-looking events discussed in this press release might not occur. JetBlue’s forward-looking statements speak only as of the date of this press release. Other than as required by law, we undertake no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise.
About JetBlue Airways
JetBlue is New York’s Hometown Airline®, and a leading carrier in Boston, Fort Lauderdale-Hollywood, Los Angeles, Orlando and San Juan. JetBlue carries customers to more than 100 destinations throughout the United States, Latin America, the Caribbean, Canada and Europe. For more information and the best fares, visit jetblue.com.
Contacts
JetBlue Investor Relations
Tel: +1 718 709 2202
ir@jetblue.com
JetBlue Corporate Communications
Tel: +1 718 709 3089
corpcomm@jetblue.com
Source: JetBlue Airways Corporation
FAQ
What is the purpose of JetBlue's $400 million convertible senior notes offering?
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