Jet2 repurchases £301.5 million in convertible bonds

LONDON - Jet2 plc, a leisure travel group, has successfully repurchased a significant portion of its convertible bonds due in 2026. The company announced on Tuesday the repurchase of £301.5 million in aggregate principal amount of its £387,400,000 1.625% Guaranteed Senior Unsecured Convertible Bonds. This transaction represents approximately 99.0% of the remaining outstanding aggregate principal amount of the bonds.

Bondholders who participated in the reverse bookbuilding process will receive an initial repurchase price of £102,500 per £100,000 in principal amount of bonds. This amount will be adjusted to the final repurchase price, which is based on the average daily volume weighted average price of Jet2’s ordinary shares on the AIM Market of the London Stock Exchange (LON:LSEG) on Tuesday and Wednesday, compared to Monday’s closing price. The company expects to announce the final repurchase price following the close of trading on Wednesday, March 12, 2025.

The settlement date for the transaction is anticipated to be Tuesday, March 18, 2025, and bondholders will also receive accrued and unpaid interest up to but excluding the settlement date. The repurchased bonds will be cancelled in accordance with the terms and conditions of the bonds.

Following this repurchase, the outstanding aggregate principal amount of the bonds will be reduced to £2.9 million. Jet2 has reminded bondholders that, with the principal amount now below 15% of the originally issued aggregate principal amount, the company intends to redeem the remaining outstanding bonds early. This redemption will occur at their principal amount plus accrued and unpaid interest, with bondholders to receive between 30 to 60 days’ notice.

The offer was made to eligible bondholders who are located outside the United States and in jurisdictions where the invitation could be lawfully extended. HSBC Bank plc and Jefferies International Limited served as Joint Dealer Managers for the invitation, with Rothschild & Co acting as financial adviser to Jet2 plc.

This announcement, which may contain information that qualifies as inside information under Article 7 of Regulation (EU) No 596/2014 as it forms part of UK law, was released by Jet2 plc and is attributed to Gary Brown of the company. The repurchase is part of Jet2’s broader financial management strategy, and the information is based on a press release statement.

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