Hawaiian Airlines, Inc. has announced the launch of a private exchange offer for the outstanding 5.750% senior secured notes due 2026 and consent solicitation. Prior to the launch of the exchange offer and consent solicitation, holders of the existing notes representing nearly 50% of the aggregate principal amount of the existing notes outstanding have indicated their intent to participate.
The exchange offer involves the exchange of existing notes for 11.000% senior secured notes due 2029 and cash. Eligible holders who tender their existing notes pursuant to the exchange offer must also deliver consents to the proposed amendments. The exchange offer and consent solicitation are being made solely to eligible holders upon the terms and subject to the conditions set forth in the confidential offering memorandum and solicitation statement.
Upon the terms and subject to the conditions of the exchange offer, eligible holders that validly tender their existing notes at or prior to 5:00 p.m., New York City time, on July 9, 2024, and whose tenders are accepted for exchange by the issuers, will receive $825.0 of new notes and $175.0 cash for every $1,000 principal amount of the existing notes. Eligible holders that validly tender, and do not validly withdraw, their existing notes after the early exchange time but at or prior to 5:00 p.m., New York City time, on July 24, 2024, and whose tenders are accepted for exchange by the issuers, will receive $825.0 of new notes and $125.0 cash for every $1,000 principal amount of the existing notes.
The exchange offer and consent solicitation are conditioned upon eligible holders validly tendering and not validly withdrawing at least $1,140,000,000 aggregate principal amount of existing notes (the “minimum participation condition”).
Hawaiian Airlines, Inc. is encouraging eligible holders interested in participating in the exchange offer and consent solicitation to contact Global Bondholder Services Corporation for further instructions and to complete the eligibility process.
This press release provides specific details about the exchange offer and consent solicitation, including the exchange consideration per $1,000 principal amount of 2026 notes tendered, total consideration for 2026 notes tendered on or prior to the early exchange time, and the consideration amount for each $1,000 principal amount of 2026 notes tendered after the early exchange time. It also outlines the conditions and deadlines for participation in the exchange offer and consent solicitation. As a result of these announcements, the company's shares have moved -1.2% on the market, and are now trading at a price of $12.49. If you want to know more, read the company's complete 8-K report here.
