ExpressJet holders put back $58.9 million 4.25% convertibles due 2023

By Susanna Moon

Chicago, Aug. 1 - ExpressJet Holdings Inc. said holders put back $58.9 million of the company's 4.25% convertible notes due 2023 as of 5 p.m. ET on July 31.

The company said it would issue 161,494,295 common shares for the notes, which represents par plus accrued interest due Aug. 1.

Following the put, $69.3 million principal amount of the convertibles remains outstanding.

Bank of New York Mellon Global Corporate Trust is the paying agent.

On July 22, the company said it planned to amend its 4.25% convertible notes due 2023 to provide improved terms and additional flexibility for noteholders who do not exercise the put option.

Changes will apply to noteholders of record on Aug. 2 following the completion of the exchange offer. They include the following:

• Security based on a pro-rata amount of collateral appraised at $181 million, including $96 million in spare parts and $85 million of spare engines;

• Coupon increase to 11.25% from 4.25% over the remaining note term; and

• An additional put right on Aug. 1, 2011.

The amount of collateral will be based on the ratio of the principal amount outstanding on Aug. 2 to $128.2 million, which was the principal amount of notes outstanding on July 22.

The terms of the additional put will be identical to that for the current rights under the indenture for Aug. 1 of 2008, 2013 and 2018.

The trustee supports the company's decision to provide noteholders additional flexibility and improved terms beyond the Aug. 1 put date, according to a press release. The amendments must be reviewed and approved by the trustee.

On July 1, the company said its shareholders approved issuing stock as possible funding for the payment of puts on the convertibles.

The company said it provided written notice to the trustee of its intention to pay the repurchase price of notes put on Aug. 1 in common stock.

Houston-based ExpressJet operates as a regional airline under the name Continental Express.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.