JetBlue causes conversion rate change for Spirit’s 2025, 2026 notes

By William Gullotti

Buffalo, N.Y., Dec. 21 – JetBlue Airways Corp. precipitated another adjustment in the conversion rate of Spirit Airlines, Inc.’s 4.75% convertible senior notes due 2025 and 1% convertible senior notes due 2026, according to an 8-K filing with the Securities and Exchange Commission.

The conversion rate for the 2025 notes has been adjusted to 94.9262 shares from 94.3344 shares of common stock, and the conversion rate for the 2026 notes has been adjusted to 24.6649 shares from 24.5111 shares of common stock in each case per $1,000 principal amount of notes.

The adjustment follows JetBlue’s Dec. 12 announcement that the company will pay $0.10 in cash per outstanding share of common stock on Dec. 29 to Spirit’s stockholders of record as of Dec. 22 as a merger consideration prepayment.

JetBlue is a New York-based airline. Spirit Airlines is a Miramar, Fla.-based low-fare airline.

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