Mesa Air wraps exchange, tender offers for two series of convertibles

By Susanna Moon

Chicago, Feb. 11 - Mesa Air Group, Inc. said it completed transactions with certain holders of its senior convertible notes due 2023, resulting in the exchange of $21,271,250 face amount of the notes.

Holders received consideration of $878,269 in cash, 8,430,458 common shares and $983,937 principal amount of new 8% senior unsecured notes due 2012.

As of Wednesday, $12,656,280 million principal amount of the 2023 notes remains outstanding.

The company also said investors tendered $13,224,000, or 11%, of its senior convertible notes due 2024 in its offer for up to $120.3 million of the notes.

The offer expired at 11:59 p.m. ET on Feb. 10.

In the exchange, Mesa issued 64,665,360 common shares.

The company also said it will immediately resume discussions with holders of $104.03 million of its convertibles due 2024 to enter into agreements on terms substantially similar to rescinded agreements.

Mesa said it could give no assurance that it will be able enter into mutually acceptable agreements with the noteholders. If discussions prove unsuccessful, the company said it intends to permit holders to put their notes on the same terms as previously provided for under the notes, including at the same pricing for the notes tendered by Feb. 10.

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

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