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JetBlue Prices $2.77 Billion of New Debt a Day After Downgrades
- Note offering increased by $500 million, loan cut similarly
- Moody’s and S&P downgraded the firm Monday amid weak results
JetBlue’s offering, which also included at least $400 million of five-year convertible notes, kicked off Monday.
Photographer: Eva Marie Uzcategui/BloombergThis article is for subscribers only.
JetBlue Airways Corp. priced $2.77 billion of bonds and loans on Tuesday after shifting the deal structure further into notes, as the recently downgraded carrier seeks to raise funds for general corporate purposes.
The firm sold $2 billion of seven-year notes callable in three with a 10% yield and a $765 million five-year term loan, according to people familiar with the matter who asked not to be identified because the information is private. The transaction is backed by JetBlue’s loyalty program, a move several peers have done in recent years.