Copa Holdings, S.A. (NYSE: CPA) has announced the pricing of USD 350,000,000 aggregate principal amount of 4.50% convertible senior notes due 2025 in a private offering, the company said.
The notes will be senior, unsecured obligations of Copa and will accrue interest at a rate of 4.50% per annum, payable semi-annually in arrears on April 15 and October 15 of each year, beginning on October 15, 2020. The notes will mature on April 15, 2025, unless earlier repurchased, redeemed or converted.
The notes will be redeemable, in whole or in part, for cash at Copa´s option at any time, and from time to time, on or after April 17, 2023 and on or before the 40th scheduled trading day immediately before the maturity date, but only if the last reported sale price per share of Copa´s Class A common stock exceeds 130% of the conversion price for a specified period of time.
Copa estimates that the net proceeds from the offering will be approximately USD 342.9 million (or approximately USD 394.4 million if the initial purchasers fully exercise their option to purchase additional notes), after deducting the initial purchasers´ discounts and commissions and estimated offering expenses. Copa intends to use the net proceeds from the offering for general corporate purposes.
Copa Holdings is a Latin American provider of passenger and cargo services. In 2019, the Company, through its operating subsidiaries, provided service to 80 destinations in 33 countries in North, Central and South America and the Caribbean with a modern fleet of 102 aircraft: 6 Boeing 737 MAX9s, 82 Boeing 737NGs aircraft and 14 Embraer-190s.