JetBlue prices $250 million convertibles to yield 3.75%, up 42.5%

New York, March 10 - JetBlue Airways Corp. priced $250 million of convertible debentures due 2035 to yield 3.75% with a 42.5% initial conversion premium.

The deal priced at the cheap end of talk which put the yield at 3.25% to 3.75% with a 42.5% to 47.5% initial conversion premium.

Morgan Stanley & Co. Inc. is bookrunner and lead manager of the registered deal, which is priced after the close Thursday. Merrill Lynch & Co., UBS Investment Bank and Blaylock & Partners LP are co-managers.

The conversion price is $25.65 and the conversion ratio 38.9864.

The debentures will be non-callable for five years, with a put in years five, 10, 15, 20 and 25.

There is a $37.5 million greenshoe available.

Proceeds will be used for working capital and capital expenditures.

JetBlue is a low-cost carrier based at New York City's John F. Kennedy International Airport.

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