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Doubtful this was for Jetblue pilot raises......

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

  • On Wednesday June 3, 2009, 8:46 pm
NEW YORK, June 3 /PRNewswire-FirstCall/ -- JetBlue Airways Corporation (Nasdaq:) 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
 
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Longhorn

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General,

I agree, something is up. Nobody knows what, but there are people speculating.
 

jetflier

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Maybe buying US Air.....the airline would be a power-house.
 

Skippy

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another victim of public math--- but damn that was huge

SKIPPY "one million dollars", ummmm... dr. evil?
 
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fam62c

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It's probably just to maintain liquidity. In this economy all kinds of companies in all kinds of industries have been raising capital as the market has started to rise. Smart companies raise capital when they can not when they are forced to. There is no such thing as too much cash in the airline industry, especially when fuel prices are rising faster than revenue. From an economic standpoint I can't think of any industry worse than the airlines; they're lucky they can raise capital at all. I don't think this about growth or aquisition, I think it's about survival.
 

General Lee

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General,

It is about $98 million, not $1 billion.

BL

Yeah, I screwed that one up. It was pretty late when I was trying to "analyze" that article. Oooooops. Still, I think VA is your target.


Bye Bye--General Lee
 

clickclickboom

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Jetblue is spending hundreds of millions of their own money to outfit Continental Airlines fleet with live tv..

The number I head is over $300,000,000 but the revenue could approach 700,000,000 per year..

I will not confirm ogf deny the VA talk.. But they do have until the 19th to secure a US investor...
 

Headfake14

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we won't 'buy' VX...but we would probably buy assets if they fold.
 

BLUE BAYOU

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Actually, the number thrown about for the raises is about 30 million a year. Don't worry though, we've raised the price of our headsets to $2 each, so we should be able to cover that...:rolleyes:
 

frog_flyer

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General,

It is about $98 million, not $1 billion.

BL

Logic prevails, finally.

BRILLIANT!

Now we know General Lee didn't major in finance, accounting, economics, mathematics, statistics, or common sense. That narrows down the search, doesn't it? As much as I love his flame posts, I can't excuse the retarded math that just happened above. I wouldn't want this guy calculating the fuel on board....
 
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maxblast72

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Now we know General Lee didn't major in finance, accounting, economics, mathematics, statistics, or common sense. That narrows down the search, doesn't it? As much as I love his flame posts, I can't excuse the retarded math that just happened above. I wouldn't want this guy calculating the fuel on board....
Cut hime some slack, he was only off by a factor of 10. What is the difference between 6,000 lbs and 600 lbs on landing. The engines will still run either way.
 

General Lee

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Logic prevails, finally.

BRILLIANT!

Now we know General Lee didn't major in finance, accounting, economics, mathematics, statistics, or common sense. That narrows down the search, doesn't it? As much as I love his flame posts, I can't excuse the retarded math that just happened above. I wouldn't want this guy calculating the fuel on board....

Hey, what do you expect? I am only 4.4 years old....

Bye Bye--General Lee
 

Dan Roman

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Actually, the number thrown about for the raises is about 30 million a year. Don't worry though, we've raised the price of our headsets to $2 each, so we should be able to cover that...:rolleyes:

I think you need to work on your math skills.
 

samballs

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Logic prevails, finally.

BRILLIANT!

Now we know General Lee didn't major in finance, accounting, economics, mathematics, statistics, or common sense. That narrows down the search, doesn't it? As much as I love his flame posts, I can't excuse the retarded math that just happened above. I wouldn't want this guy calculating the fuel on board....
Come on, he works for DL. No DL pilot knows math, the proof is they still cant add up how much they have given up in scope.
 
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