JetBlue announces sale of $250 million of convertibles
#1
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JetBlue announces sale of $250 million of convertibles
As I posted not too long ago, B6 burned thru a lot of cash last year. Now the pending cash crunch at B6 has now manifested itself in a sale of convertibles. For the uninitiated, this type of financing is common among troubled companies.
http://biz.yahoo.com/bw/050309/95823_1.html
The awful part is that higher fuel prices will probably eat up this quarter billion by Dec 31.
Add to that the continued yield and RASM decline - and it may turn into a very bumpy ride.
JetBlue Announces Proposed Offering of Convertible Debentures
Wednesday March 9, 4:00 pm ET
NEW YORK--(BUSINESS WIRE)--March 9, 2005--JetBlue Airways Corporation (NASDAQ: JBLU - News) today announced its intention to sell, subject to market and other conditions, approximately $250 million aggregate principal amount of Convertible Debentures due 2035. In addition, JetBlue is expected to grant the underwriters an over-allotment option to purchase up to an additional $37.5 million principal amount of debentures. The interest rate, conversion rate and offering price of the debentures are to be determined by negotiations between JetBlue and the underwriters.
Morgan Stanley is the sole bookrunning manager for the offering, with Merrill Lynch & Co., UBS Investment Bank and Blaylock & Partners, L.P. acting as co-managers. A copy of the prospectus supplement and accompanying prospectus relating to the offering may be obtained from the offices of Morgan Stanley & Co. Incorporated, 1585 Broadway, New York, NY 10036.
A registration statement relating to these securities has been filed with the Securities and Exchange Commission. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Wednesday March 9, 4:00 pm ET
NEW YORK--(BUSINESS WIRE)--March 9, 2005--JetBlue Airways Corporation (NASDAQ: JBLU - News) today announced its intention to sell, subject to market and other conditions, approximately $250 million aggregate principal amount of Convertible Debentures due 2035. In addition, JetBlue is expected to grant the underwriters an over-allotment option to purchase up to an additional $37.5 million principal amount of debentures. The interest rate, conversion rate and offering price of the debentures are to be determined by negotiations between JetBlue and the underwriters.
Morgan Stanley is the sole bookrunning manager for the offering, with Merrill Lynch & Co., UBS Investment Bank and Blaylock & Partners, L.P. acting as co-managers. A copy of the prospectus supplement and accompanying prospectus relating to the offering may be obtained from the offices of Morgan Stanley & Co. Incorporated, 1585 Broadway, New York, NY 10036.
A registration statement relating to these securities has been filed with the Securities and Exchange Commission. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
The awful part is that higher fuel prices will probably eat up this quarter billion by Dec 31.
Add to that the continued yield and RASM decline - and it may turn into a very bumpy ride.
#2
Join Date: Mar 2000
Location: California
Programs: AA EXP 5 Mil, UA Global Services, BA Gold, DL Diamond, SPG Plat75, Hilton Diamond
Posts: 1,231
Originally Posted by FWAAA
As I posted not too long ago, B6 burned thru a lot of cash last year. Now the pending cash crunch at B6 has now manifested itself in a sale of convertibles. For the uninitiated, this type of financing is common among troubled companies.
The awful part is that higher fuel prices will probably eat up this quarter billion by Dec 31.
Add to that the continued yield and RASM decline - and it may turn into a very bumpy ride.
The awful part is that higher fuel prices will probably eat up this quarter billion by Dec 31.
Add to that the continued yield and RASM decline - and it may turn into a very bumpy ride.