ExpressJet determines exchange ratio for any 4.25% convertibles put on Friday

By Angela McDaniels

Tacoma, Wash., July 29 - ExpressJet Holdings Inc. said it will issue 2,684 shares for each $1,000 principal amount of 4.25% convertible notes due 2023 put back to the company on Aug. 1.

The number of shares is based on 97.5% of the average closing price of the common stock for the five consecutive trading days ended on July 29, according to a company news release.

The notes were issued in 2003 with a conversion ratio of 54.9451.

On July 22, the company announced plans to amend any convertibles that remain outstanding after the put date. The new terms include:

• Security based on a pro-rata amount of collateral appraised at $181 million, including $96 million in spare parts and $85 million of spare engines;

• An increase in the coupon to 11.25% from 4.25% over the remaining note term; and

• An additional put right on Aug. 1, 2011.

ExpressJet said the trustee under the note indenture has substantially approved the amendments.

Houston-based ExpressJet operates as a regional airline under the name Continental Express.

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