New York, May 17 - America West Airlines Inc. filed a registration statement allowing the resale of $129 million convertibles notes issued in connection with the government-guaranteed loan it obtained in January.
The statement, filed with the Securities and Exchange Commission Friday, allows holders of the convertibles to resell them.
In total, the Phoenix, Ariz. airline issued $104.465 million of the convertibles along with warrants when it closed on a $429 million loan supported by a $380 million government guarantee. The convertibles were issued to aircraft lessors as partial compensation for aircraft rent reductions.
The first six interest payments can be paid in kind. The registration assumes this will happen so it includes a further $24.618 million of notes from this source.
Terms of the notes are as follows:
| Issuer: | America West Airlines Inc.
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| Issue: | Senior unsecured convertible notes
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| Amount: | $104.465 million
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| Maturity: | Jan. 18, 2009
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| Coupon: | 7.5% beginning June 1, 2002 (first six payments totaling $24.618 million can be paid in kind)
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| Conversion price: | $12.00 from Jan. 18, 2005 onwards or when redeemed (into class B common stock)
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| Conversion ratio: | 83.333
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| Provisional call: | Up to Jan.18, 2005 at par if stock trades above 120% of conversion price for 20 out of 30 trading days
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| Hard call: | Jan. 18, 2005 at 103.75, then at 102.5, 101.25, declining to par on Jan. 18, 2008
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