AirTran talks $75 million seven-year convertibles at 5.25%-5.75%, up 15%-20% for Wednesday

By Kenneth Lim

Boston, Oct. 6 - AirTran Holdings, Inc. plans to price $75 million of seven-year convertible senior notes on Wednesday after the market closes, with price talk at a coupon of 5.25% to 5.75% and an initial conversion premium of 15% to 20%.

The notes will be offered at par. There is a concurrent public offering of 9 million shares of common stock.

Morgan Stanley & Co. Inc. is the bookrunner of the off-the-shelf offering.

There is an over-allotment option for an additional $11.25 million.

The notes are non-callable and may not be put.

The convertibles will have dividend and takeover protection.

Proceeds will be used for general corporate purposes, which may include working capital, capital expenditures or debt retirement.

AirTran is an Orlando, Fla.-based airline.

© 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.