AirTran talks $65 million seven-year convertibles at 5%-5.5%, up 20%-25%, to price Thursday

By Kenneth Lim

Boston, April 22 - AirTran Holdings Inc. plans to price $65 million of seven-year convertible senior notes on Thursday after the market closes, talked at a coupon of 5% to 5.5% and an initial conversion premium of 20% to 25%.

The convertibles will be offered at par.

There is an over-allotment option for a further $9.75 million.

Morgan Stanley & Co. Inc. is the bookrunner of the registered shelf offering.

There is a concurrent common stock offering of 14.25 million common shares with a greenshoe for an additional 2.1375 million common shares.

The notes are non-callable and may not be put.

The notes have dividend and takeover protection.

AirTran, an Orlando, Fla.-based airline, said it will place part of the proceeds from the notes offering into an escrow account to fund the first six interest payments. The rest of the proceeds will be used for general corporate purposes, which may include working capital, capital expenditures, debt retirement and strategic investments.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.