Jet2 plc announces convertible bond repurchase plan

Published 11/03/2025, 08:14
Jet2 plc announces convertible bond repurchase plan

LONDON - Jet2 plc, a prominent leisure travel group, has initiated a repurchase of its existing £387.4 million 1.625% Guaranteed Senior Unsecured Convertible Bonds due 2026, of which £304.4 million are currently outstanding. The company has invited bondholders to sell their bonds back for cash at a price to be determined through a reverse bookbuilding process.

The invitation to tender the bonds began today and is expected to close at 4:30 pm UK time. Jet2 reserves the right to extend, reopen, amend, or terminate the invitation at any time before the final aggregate principal amount of bonds accepted for purchase is announced.

Eligible bondholders who choose to participate will receive an initial repurchase price of £102,500 per £100,000 in principal amount of bonds, which will be adjusted to the final repurchase price based on the average of the daily volume-weighted average prices (VWAPs) of Jet2’s shares on the AIM Market of the London Stock Exchange (LON:LSEG) on Tuesday and Wednesday, in comparison to Monday’s closing price. This amount will also include accrued and unpaid interest up to the settlement date.

Jet2 aims to repurchase up to 100% of the outstanding principal amount of the bonds. If, as a result of the buyback, the remaining bonds fall below 15% of the originally issued total, the company intends to redeem the remaining bonds at their principal amount plus accrued interest.

The invitation is not available to bondholders in the United States or any jurisdiction where it would be unlawful to participate. It is targeted at eligible bondholders outside of these restricted regions, as outlined in the invitation and distribution restrictions.

HSBC Bank plc and Jefferies International Limited are acting as the joint dealer managers for the invitation, and Rothschild & Co is serving as financial adviser to Jet2. The company may also continue to purchase bonds through open market transactions at its discretion.

The total principal amount of bonds accepted for purchase is expected to be announced today following the close of the repurchase period, and the final repurchase price is anticipated to be announced tomorrow after the market closes. Settlement is scheduled for around Tuesday, March 18, 2025, with any repurchased bonds to be canceled thereafter.

This announcement, containing details that may be considered inside information under UK Market Abuse Regulation, has been released by Jet2 plc and disclosed by Gary Brown of Jet2 plc. The information is based on a press release statement from the company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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