Mesa Air to exchange stock for $14.3 million 3.625% convertibles

By Angela McDaniels

Tacoma, Wash., Aug. 20 - Mesa Air Group, Inc. said it agreed to issue 13,571,428 shares of common stock in exchange for $14.3 million principal amount at maturity of its 3.625% senior convertible notes due 2024.

The agreement was entered into with a major holder of the notes, according to a company news release.

The number of shares was determined by dividing $2.85 million, which reflected the parties' agreed-upon discounted value of the notes, by $0.21, which was agreed to by the parties in view of recent market prices for the company's common stock.

Once the exchange is settled, $3.1 million of the notes will remain outstanding.

In a series of transactions that occurred in February, the company retired $83.7 million principal amount at maturity of the notes.

Mesa Air is a Phoenix-based provider of passenger and airfreight services.

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