General Lee
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Press Release Source: JetBlue Airways
JetBlue Announces Pricing of 23,000,000 Shares of Common Stock and $175,000,000 of Convertible Debentures
announced today that it has increased its previously announced offering of 20,000,000 shares of common stock to 23,000,000 shares of common stock at a price of $4.25 per share. Of the 23,000,000 shares of common stock, it is expected that Deutsche Lufthansa AG (Lufthansa) will purchase 3,578,800 shares in the public offering. JetBlue also announced that it increased its previously announced offering of convertible debentures from $150 million to $175 million aggregate principal amount, divided into $100 million of 6.75% convertible debentures due 2039 (the series A debentures) and $75 million of 6.75% convertible debentures due 2039 (the series B debentures). The issuance of the common stock and the sale of the convertible debentures is expected to close on June 9, 2009, subject to various customary closing conditions. Neither of these offerings is contingent upon the closing of the other offering.
Both series of debentures will be convertible into shares of JetBlue's common stock at a conversion rate of 204.6036 shares per $1,000 principal amount of debentures (which is equivalent to a conversion price of approximately $4.89 per share), subject to adjustment. Both series of debentures are subject to redemption on or after certain dates and repurchase on certain specified dates and following certain designated events. Both series of debentures will bear interest at a rate of 6.75% per annum, payable on April 15 and October 15 of each year, beginning October 15, 2009.
JetBlue has granted the underwriter for the common stock offering a 30-day over-allotment option to purchase up to an additional 3,450,000 shares of common stock (less any shares purchased by Lufthansa pursuant to its option described below). JetBlue has granted the underwriters for the debenture offering a 30-day over-allotment option to purchase up to an additional $15 million principal amount of the series A debentures and $11.25 million principal amount of the series B debentures. JetBlue has also granted Lufthansa an option to purchase up to 15.6% of the shares JetBlue would otherwise have provided to the underwriter as part of its over-allotment option, but only to the extent the underwriter exercise that option.
Morgan Stanley & Co. Incorporated served as sole book-running manager for both offerings and Goldman, Sachs & Co. and J.P. Morgan Securities Inc. served as co-managers for the debenture offering.
JetBlue intends to use the proceeds from these offerings for general corporate purposes.
Does anyone really think this is for pilot wages? How about the possibility of buying Virgin America or Frontier? You never know......sure seems like a lot of money.(23 million X $4.25 is about a billion dollars, right?) Maybe it is for giving all of the JB pilots back pay for their new raises, since it is retro since June 1st and won't be given out until AUG?
Bye Bye--General Lee
JetBlue Announces Pricing of 23,000,000 Shares of Common Stock and $175,000,000 of Convertible Debentures
- On Wednesday June 3, 2009, 8:46 pm
Both series of debentures will be convertible into shares of JetBlue's common stock at a conversion rate of 204.6036 shares per $1,000 principal amount of debentures (which is equivalent to a conversion price of approximately $4.89 per share), subject to adjustment. Both series of debentures are subject to redemption on or after certain dates and repurchase on certain specified dates and following certain designated events. Both series of debentures will bear interest at a rate of 6.75% per annum, payable on April 15 and October 15 of each year, beginning October 15, 2009.
JetBlue has granted the underwriter for the common stock offering a 30-day over-allotment option to purchase up to an additional 3,450,000 shares of common stock (less any shares purchased by Lufthansa pursuant to its option described below). JetBlue has granted the underwriters for the debenture offering a 30-day over-allotment option to purchase up to an additional $15 million principal amount of the series A debentures and $11.25 million principal amount of the series B debentures. JetBlue has also granted Lufthansa an option to purchase up to 15.6% of the shares JetBlue would otherwise have provided to the underwriter as part of its over-allotment option, but only to the extent the underwriter exercise that option.
Morgan Stanley & Co. Incorporated served as sole book-running manager for both offerings and Goldman, Sachs & Co. and J.P. Morgan Securities Inc. served as co-managers for the debenture offering.
JetBlue intends to use the proceeds from these offerings for general corporate purposes.
Does anyone really think this is for pilot wages? How about the possibility of buying Virgin America or Frontier? You never know......sure seems like a lot of money.(23 million X $4.25 is about a billion dollars, right?) Maybe it is for giving all of the JB pilots back pay for their new raises, since it is retro since June 1st and won't be given out until AUG?
Bye Bye--General Lee
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