Southwest Airlines is back in the market with a $1bn bond issuance comprising $300 million senior five-year 5.250% notes, due 2025, and $700 million seven-year 5.125% notes, due 2027. The five year notes issued at 106.768% of par and the seven-year notes issued at 105.170% of par, plus accrued interest, to yield 3.661% and 4.231% respectively.
The 2025 notes are an additional issuance to Southwest’s 5.250% notes due 2025, which were issued as part of the $1.25 billion offering on May 4, 2020, with identical terms. The 2027 notes are an additional issuance to Southwest’s 5.125% notes due 2027, which formed part of the $1.3 billion offering from June 8, 2020, again with identical terms.
Southwest intends to use the net proceeds for general corporate purposes, which may include the repayment or redemption of unsecured indebtedness maturing in the next 12 months. The offering is expected to close on or about July 31, 2020.
Goldman Sachs and Wells Fargo are joint lead bookrunners. Comerica, Cowen and Company and Penserra are co-managers.