JetBlue 6.75% convertibles lifted to $201.25 million through greenshoe

By Devika Patel

Knoxville, Tenn., June 9 - Underwriters for JetBlue Airways Corp.'s offering of 6.75% 30-year convertible debentures exercised their over-allotment option in full for $15 million more of the series A notes, increasing the size of the issue to $115 million, and $11.25 million more of the series B notes, increasing the issue to $86.25 million.

As previously reported, the company sold the notes at par on June 3 in a registered offering via bookrunner Morgan Stanley & Co. Inc. and co-managers Goldman, Sachs & Co. and J.P. Morgan Securities Inc.

The notes have a conversion premium of 15% and a conversion ratio of 204.6036, which equals a conversion price of $4.89.

Series A is non-callable for five years, with investor puts in years 2014, 2019, 2024, 2029 and 2034. Series B is non-callable for seven years, with investor puts in years 2016, 2021, 2026, 2031 and 2036.

Proceeds are earmarked for general corporate purposes.

JetBlue is a New York-based low-cost air carrier.

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