AirTran plans change-of-control tender offer for 7% convertible notes

By Angela McDaniels

Tacoma, Wash., April 14 - AirTran Holdings, Inc. must offer to purchase its 7% convertible notes due 2023 at par if it is acquired by Southwest Airlines Co., according to a schedule TO filed with the Securities and Exchange Commission.

Southwest agreed in September 2010 to acquire the company for $3.75 in cash and 0.321 shares of Southwest common stock per share of AirTran common stock. The deal is expected to close during the second quarter and remains subject to regulatory approval.

There will be a conversion period during which time holders who convert will receive the same amount of cash and Southwest stock that they would have received if they had converted prior to the merger closing.

As previously reported, the company will also be required to tender for its 5.5% convertible senior notes due 2015 and its 5.25% convertible senior notes due 2016.

AirTran is the parent company of AirTran Airways, Inc., an Orlando, Fla.-based airline. Southwest is based in Dallas.

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