Mesa Air shareholders OK increase in authorized shares for convertibles repurchase

By Jennifer Chiou

New York, Jan. 7 - Mesa Air Group, Inc. announced that shareholders approved an increase to its authorized stock amount for the repurchase of the company's outstanding senior convertible notes due 2023 and 2024.

The meeting had been moved to 6 p.m. ET on Tuesday from Dec. 22.

Holders authorized an increase to 900 million shares from 75 million shares as well as the issue of shares to satisfy Mesa's obligation to repurchase up to all of its outstanding senior convertibles due 2023 and senior convertibles due 2024 in the event that noteholders exercise their right to require Mesa to repurchase their notes.

"We are pleased that our shareholders approved the increase in the number of authorized shares of common stock and the use of common stock to satisfy our note repurchase obligations," Jonathan Ornstein, Mesa Air Group chairman and chief executive officer, said in a company news release.

"This approval gives us the flexibility to use common stock in lieu of cash to repurchase notes in the event note holders exercise their put rights. We appreciate our shareholders giving us this flexibility while we continue to discuss a number of options with our bondholders."

Phoenix-based Mesa operates 181 aircraft.

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