JetBlue Shares Stumble on Stock Offering

JetBlue Airwaysplans to raise funds by selling 20 million new shares and $150 million in convertible debentures, the airline said Friday.

News of the stock offering knocked JetBlue shares about 5 percent lower in extended trading Tuesday. Click here to see after-hour quotes for JetBlue.

JetBlue said it will use proceeds from its offers for general corporate purposes. The underwriters of the offers will have the option to buy as many as 3 million more shares and $11.25 million in debentures, which will mature in 2039. Debentures are interest-bearing loan certificates.

JetBlue had 272.8 million shares outstanding at the end of March. Shares dropped in aftermarket trading.

The underwriters are reserving 15.6 percent of the new shares for sale to Lufthansa, which has a stake in JetBlue.


Morgan Stanley will be the sole book-running manager for the offerings. Goldman Sachs and JP Morgan Securities will be co-managers for the debenture offering.

Separately, JetBlue said its May traffic fell 3.3 percent, as capacity was down 1.1 percent. Load factor, or percentage of seats filled, was down 1.8 percentage points to 77.4 percent from 79.2 percent a in May 2008.

- staff contributed to this report.