Summary JetBlue has looked to raise $3.1 billion through various measures, including guaranteeing some of the debt with its loyalty program, TrueBlue. Over the past six months, the airline had improved its cash situation slightly.
At the same time, it has deferred Airbus A321neo aircraft, which were due for delivery between 2025 and 2029, to 2030 and beyond, which will further improve its cash situation. JetBlue has announced that it was looking to raise up to $3.1 billion in two separate note offerings and a senior secured loyalty term, with both liquidity measures being announced on August 12.
Guaranteeing $2.75 billion with its loyalty program According to one statement, JetBlue intended to commence a private offering of $1.5 billion aggregate principal amount of senior secured notes that were due in 2031.
Furthermore, it wanted to launch a proposes senor secured Term Loan B due in 2029 in an aggregate principal amount of $1.25 billion. “The Loyalty Notes will be secured, on a pari passu basis with the Loyalty Term Loan, by, among other assets, a first-priority lien on the core assets of JetBlue’s customer loyalty program, TrueBlue.
” The airline said that it would use the net proceeds from both liquidity measures for “general corporate purposes.” Talks are in the preliminary stage. $400 million notes offering In a separate announcement, JetBlue said that it would offer $400 million aggregate principal amount of convertible senior notes that were due in 2029.
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