JetBlue Announces Proposed Offering of $160 Million of Convertible Debentures and Proposed Entry Into a Share Lending Agreement

Tuesday May 27, 4:25 pm ET

NEW YORK, May 27, 2008 (PRIME NEWSWIRE) -- JetBlue Airways Corporation (NasdaqGS:JBLU - News) today announced that it intends to offer, subject to market conditions, $160 million aggregate principal amount of convertible debentures, which are to be divided into two series, each with an aggregate principal amount of $80 million in a registered public offering. The debentures of each series will mature in 2038. JetBlue intends to grant the underwriters of the debentures a 30-day over-allotment option to purchase up to an additional 15% of the principal amount of the debentures of each series. JetBlue anticipates that one series of debentures will become subject to redemption by JetBlue, and have an initial date for repurchase at the holder's option, in 2013 and the other series will become subject to redemption by JetBlue, and have an initial date for repurchase at the holder's option, in 2015.

The debentures of each series will be convertible into JetBlue common stock at the option of their holders. The interest rate, conversion rate, conversion price, offering price and other terms of the debentures of each series will be determined at the time of pricing of the offering. The debentures will be general senior obligations of JetBlue, except that they will be secured by two escrow accounts, one for each series of debentures. JetBlue intends to deposit into each escrow account a portion of the net proceeds of the offering equal to the sum of the first six scheduled semi-annual interest payments for that series of debentures. This sum will be held in each escrow account for the exclusive benefit of the holders of the debentures of the corresponding series. JetBlue intends to use the remaining net proceeds from the offering (together with cash on hand, if needed) for repayment of up to $175 million principal amount of its 31/2% convertible notes due 2033 which will become subject to repurchase by JetBlue at the holders' option on July 15, 2008. After the allocation of net proceeds as aforementioned, to the extent there are remaining net proceeds from the offering, JetBlue intends to use them for general corporate purposes.