Hawaiian Airlines, Inc. has announced the results of its previously announced private exchange offer for its outstanding 5.750% senior secured notes due 2026 and consent solicitation. As of the expiration time of 5:00 p.m., New York City time, on July 24, 2024, approximately $1,193,732,902 aggregate principal amount (or approximately 99.5% of the outstanding principal amount) of the existing notes had been validly tendered and not validly withdrawn in the exchange offer.
The exchange offer was made to eligible holders, resulting in a significant response with almost the entire outstanding principal amount of existing notes being tendered for exchange. The settlement of the exchange offer is expected to occur on July 26, 2024.
Under the terms of the exchange offer, holders of existing notes tendered after the early exchange time but at or prior to the expiration time and accepted by the issuers for exchange will receive a payment of $825.0 of new notes and $125.0 in cash for every $1,000 principal amount of existing notes tendered. Meanwhile, holders of existing notes tendered on or prior to the early exchange time and accepted for exchange will receive $825.0 of new notes and $175.0 in cash for every $1,000 principal amount of existing notes tendered, in addition to a cash interest payment.
The exchange offer and consent solicitation were made in compliance with the securities regulations, specifically targeting "qualified institutional buyers" and holders that are not "U.S. persons." The new notes offered as part of the exchange offer have not been registered under the securities laws and are subject to significant restrictions on transfer and resale.
Hawaiian Airlines, Inc. is the largest and longest-serving airline in Hawaii, offering approximately 150 daily flights within the Hawaiian Islands and nonstop flights between Hawaii and 16 U.S. gateway cities. The carrier has received accolades for its service and performance, including being named Hawaii's best employer by Forbes in 2022 and topping Travel + Leisure’s world’s best list as the number one U.S. airline for the past two years. The market has reacted to these announcements by moving the company's shares 4.5% to a price of $12.44. If you want to know more, read the company's complete 8-K report here.