JetBlue has priced its $2bn 9.875% senior secured notes due 2031 and $765 million senior secured Term Loan B due 2029, offered through its loyalty programme TrueBlue. JetBlue said on August 12, 2024, it intended to raise approximately $3.15bn through multiple notes offerings. The loyalty secured proposal consisted of a private offering of $1.5bn senior secured notes due 2031 and an additional $1.25bn senior secured term loan B due 2029. In the filing dated August 14, 2024, JetBlue said: ""The notes offering was increased by $500 million from the previously announced offering size of $1.5bn in connection with a decrease to the size of the term loan."" In a separate release on August 12, 2024, JetBlue said it intended to raise $400 million through a convertible senior notes offering due 2029. The airline also expects to allow initial buyers of the notes to purchase an additional $60 million in notes within 13 days of the original issuance. The airline saw its ratings being downgraded by S&P and Moody's following the news. Fitch Ratings downgraded JetBlue's existing senior secured debt ratings from BB/RR1 down to BB-/RR2. It assigned BB/RR1 ratings to JetBlue's proposed loyalty backed senior secured debt facilities. Fitch Ratings said: ""The loyalty program debt ratings reflect the financial and strategic essentiality of the loyalty program assets for JetBlue, which support high recovery expectations in a bankruptcy scenario."" The airline's stock plummeted over 24% since it revealed its intentions to raise over $3bn in debt. The airline made a surprise profit in the second quarter of the year, with its stock jumping last month after it published the report. In a bid to improve its liquidity position, the airline deferred 44 of its A321neo deliveries that were originally scheduled to be delivered from 2025 through to 2029. The aircraft deliveries were revised to 2030 and beyond. As of June 30, 2024, its cash and cash equivalents were $1.3bn and total assets were valued at approximately $14bn. In addition, total debt was at $5.4bn and stockholders’ equity at $2.7bn.
JetBlue prices loyalty notes offering and term loan
