Alaska Air says 100% of floating-rate convertibles converted ahead of redemption

By Angela McDaniels

Seattle, April 27 - Alaska Air Group Inc. said holders of all $150 million outstanding of its floating-rate senior convertible notes due 2023 converted their notes into Alaska Air Group common stock before the April 28 redemption date.

The notes were convertible into 38.4615 Alaska Air shares per $1,000 principal amount of notes. The company said it issued roughly 5.8 million news shares of Alaska Air common stock.

"With this transaction, we have converted $150 million of debt into equity," chief financial officer Brad Tilden said in a company news release.

"Coupled with our recent equity offering, this conversion further improves our balance sheet and cuts future interest expense, putting us in a stronger position to fund long-term growth."

The reduction in debt will lower the company's interest expense by about $11 million annually. Following the conversion, there were about 39.3 million shares of Alaska Air Group common stock outstanding.

Alaska Air is the parent company of Alaska Airlines Inc., a Seattle-based airline.

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