On Wednesday, JetBlue Airways Corp. (JBLU), in partnership with JetBlue Loyalty, LP, announced the pricing of its Loyalty Financings. These include $2 billion in 9.875% senior secured notes due in 2031 and a $765 million senior secured Term Loan B maturing in 2029.
The offering of the notes was increased by $500 million from the initially planned $1.5 billion, leading to a corresponding reduction in the size of the Term Loan.
The net proceeds from these financings will be used for general corporate purposes.
The notes are available exclusively to qualified institutional buyers and international investors.
The Loyalty Financings are expected to close around August 27, 2024, and will be secured by certain JetBlue subsidiaries, with the collateral linked to JetBlue's TrueBlue customer loyalty program.
