Copa to redeem all $350 million of 4.5% convertibles on Sept. 18

By Mary-Katherine Stinson

Lexington, Ky., July 14 – Copa Holdings SA will redeem all its outstanding $350 million of 4.5% convertible senior notes due 2025 (Cusip: 21720AAB8) on Sept. 18, according to a company news release.

The redemption will be at par plus accrued interest.

The notes are convertible at any time before 5 p.m. ET on Sept. 15, which is the business day immediately before the redemption date.

Notes surrendered for conversion will be settled in a combination of cash up to the principal amount and Copa common stock, if any, in excess of the principal. Copa will pay cash in lieu of issuing fractional shares.

As the notice of redemption is a make-whole fundamental change, the conversion rate has been increased.

As of July 14, the conversion rate (including the additional shares) for all conversions is 20.1603 shares of Copa common stock per $1,000 principal amount of notes, representing an increase of 0.4751 of a share.

Wilmington Trust, NA is the trustee for the notes.

Copa Holdings is a Panama City-based parent company of Copa Airlines.

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