JetBlue Airways issued $108 million in secured private equipment notes to finance the delivery of Airbus A320 and Embraer 190 aircraft during the second quarter.
The notes are secured by two new A320s and two new E190s, according to a stock exchange filing. They mature in 2024.
JetBlue received two A320s and one E190 during the quarter and expects to receive four A320s and one E190 in the second half, said Mark Powers, chief financial officer at JetBlue, during an earnings call last month. It is evaluating financing options for the additional aircraft, he added.
The New York-based carrier had $652 million in cash and cash equivalents at the end of the June, which is the same as at the end of March. It had $575 million in cash at the end of June 2011.
JetBlue had $2.6 billion in long-term debt and capital lease obligations at the end of the second quarter, which was down 7.1% from $2.8 billion at the end of the first quarter. It had $2.9 billion in debt at the end of the second quarter of 2011.
The airline opened a $100 million revolving credit line with Morgan Stanley in July. The debt is priced at 100bp over Libor. The airline had yet to draw on the credit line as of 1 August.
Source: Air Transport Intelligence news
