ExpressJet to redeem $1.8 million 11.25% convertibles to correct error

By Angela McDaniels

Tacoma, Wash., July 27 - ExpressJet Holdings, Inc. will redeem $1.8 million principal amount of its 11.25% convertible secured notes due 2023 on Aug. 23, according to a company news release.

The redemption is being made to correct an administrative error made by the company's agent that led to the redemption of only $3.2 million of the convertibles on July 9. ExpressJet had planned to redeem $5 million of the convertibles on that date.

The company said the administrative error will not impact it financially.

As previously reported, another $5 million of the convertibles will be redeemed on Aug. 2.

After completing these redemptions, the remaining balance in ExpressJet's securities repurchase program will be $11.8 million, and the company's remaining balance on the notes will be $33.6 million, which is a 43% reduction versus June 30, 2009.

The company expects any future purchases under the repurchase program to be made periodically in the open market or in privately negotiated transactions.

Houston-based ExpressJet Holdings is the parent company of ExpressJet Airlines, Inc. It operates aircraft for Continental Airlines, Inc. under a capacity purchase agreement, operates charter aircraft and provides third-party aviation and ground handling services.

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