Southwest Airlines Announces Redemption Of 2.650% Notes Due 2020

Rhea-AI Summary

On September 15, 2020, Southwest Airlines Co. (LUV) announced the redemption of all outstanding 2.650% Notes due 2020, totaling $500 million. The total payment to noteholders will amount to approximately $505.52 million, covering principal and accrued interest. This redemption is scheduled for October 5, 2020, and will be funded using cash on hand. Post-redemption, the Notes will cease to be deemed outstanding. Wells Fargo Bank, N.A. is the trustee and paying agent for this transaction.

Positive

• Redemption of $500 million in Notes indicates strong cash position.
• The total payout of $505.52 million reflects the company’s commitment to managing its debt.

Negative

• None.

DALLAS, Sept. 15, 2020 /PRNewswire/ -- Southwest Airlines Co. (NYSE: LUV) (the "Company") today announced that it will redeem all of its outstanding 2.650% Notes due 2020 (the "Notes"). The aggregate principal amount outstanding of the Notes is $500,000,000. The redemption price for the Notes will be equal to 100% of the principal amount thereof, plus accrued and unpaid interest, for a total payment to holders of the Notes of approximately $505,521,000 in the aggregate. The redemption of the Notes is scheduled to occur on October 5, 2020. The Company intends to fund the redemption with cash on hand. On and after the redemption date, the Notes will no longer be deemed outstanding, interest will cease to accrue thereon, and all rights of the holders of the Notes will cease, except for the right to receive the redemption price.

Wells Fargo Bank, N.A. is the trustee for the Notes and is serving as the paying agent for this transaction. Copies of the Notice of Redemption and additional information relating to the redemption of the Notes may be obtained from Wells Fargo Bank, N.A., Corporate Trust Operations, MAC N9300-070, 600 South Fourth Street, 7^th Floor, Minneapolis, MN 55415, telephone: 1-800-344-5128.

About Southwest Airlines Co.
In its 50^th year of service, Dallas-based Southwest Airlines Co. continues to differentiate itself from other air carriers with exemplary Customer Service delivered by more than 60,000 Employees to a Customer base topping 130 million passengers in 2019. Southwest became the nation's largest domestic air carrier in 2003 and maintains that ranking based on the U.S. Department of Transportation's most recent reporting of domestic originating passengers boarded. In peak travel seasons during 2019, Southwest operated more than 4,000 weekday departures among a network of 101 destinations in the United States and 10 additional countries. In early 2020, the carrier added service to Hilo, Hawaii, and Cozumel, Mexico for a total of 103 airports served.

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SOURCE Southwest Airlines Co.

FAQ

What is the value of the Notes Southwest Airlines is redeeming?

Southwest Airlines is redeeming $500 million of outstanding Notes.

When is the redemption date for the 2.650% Notes due 2020?

The redemption date is scheduled for October 5, 2020.

How will Southwest Airlines fund the redemption of the Notes?

Southwest Airlines will fund the redemption using cash on hand.

What will be the total payment to holders of the Notes?

The total payment to holders will be approximately $505.52 million.

Who is the trustee for the Notes being redeemed?

Wells Fargo Bank, N.A. is the trustee for the Notes.