Transportation
JetBlue in Talks to Sell Junk Bonds Yielding Up to 10%
- It seeks to offer $1.5 billion note, $1.25 billion loan
- The financing package could launch as soon as Aug. 12
JetBlue selling a bond yielding as much as 10% would compare with the average 7.71% yield as of Wednesday for US junk notes in the secondary market.
Photographer: Angus Mordant/BloombergThis article is for subscribers only.
JetBlue Airways Corp. is in discussions with lenders to sell $1.5 billion of high-yield bonds that would yield about 9.5% to 10%, according to people with knowledge of the matter.
The airline is also considering a $1.25 billion leveraged loan with a margin of 5 to 5.5 percentage points over the Secured Overnight Financing Rate, the people said, who asked not to be named discussing a private transaction.