
Lufthansa (Frankfurt) will issue a corporate bond exchangeable into shares of JetBlue Airways, a transaction that could see Lufthansa’s stake in JetBlue decline to zero.
The group issued the following statement:
“Lufthansa Malta Blues LP announces its intention to offer notes due 2017 exchangeable into shares of common stock of JetBlue Airways Corporation at the option of the note holders. The notes will be guaranteed by Deutsche Lufthansa AG and are to be offered and sold to qualified institutional buyers that are also qualified purchasers in an institutional private placement without registration pursuant to Rule 144A under the U.S. Securities Act of 1933, as amended (the “Securities Act”).
The notes wil be exchangeable into up to 46.7 million shares of JetBlue common stock. Lufthansa has an option to give investors exercising their exchange rights cash instead of JetBlue shares. The coupon and exchange premium will be set at pricing, which is expected on March 29, 2012. Settlement of the issue is expected to take place on or around 5 April 2012. The proceeds from the offering are to be used for general corporate purposes.”
Read the analysis by Market Watch: CLICK HERE
Top Copyright Photo: Rolf Wallner.
Lufthansa Slide Show: CLICK HERE
JetBlue Slide Show: CLICK HERE
Bottom Copyright Photo: Brian McDonough.

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