ExpressJet to use cash to redeem additional 11.25% convertible notes

By Lisa Kerner

Charlotte, N.C., June 18 - ExpressJet Holdings, Inc. will use cash to fund the redemption of $5 million more of its 11.25% secured convertible notes due 2023 at par on Aug. 2.

The redemption, announced on Thursday, is in addition to the $5 million redemption of the convertibles planned for July 9.

According to a company spokesperson, ExpressJet's board of directors had determined it wanted to retire the notes prior to the Aug. 2011 put date if possible.

As previously reported, after the redemption, $33.6 million of the notes will remain outstanding, and the remaining balance under ExpressJet's securities repurchase program will be $11.6 million.

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

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