Southwest Airlines prices public offering of USD 1.8bn senior notes

Southwest Airlines Co. (NYSE: LUV) has announced the pricing of its underwritten public offering of USD 1.8 billion aggregate principal amount of senior notes, the company said.

The notes consist of USD 500 million aggregate principal amount of 4.750% Notes due 2023 and USD 1.3 billion aggregate principal amount of 5.125% Notes due 2027. The 2023 Notes will be issued at 102.725% of par and the 2027 Notes will be issued at par.

The 2023 Notes are being offered as an additional issuance of the Company´s 4.750% Notes due 2023, of which the company issued USD 750 million aggregate principal amount on May 4, 2020. The 2023 Notes are part of the same class as the initial notes of that series and have identical terms, other than the issue date and issue price, as the initial notes of that series.

The Company expects to use the net proceeds from the offering to repay all of the outstanding borrowings under its Amended and Restated 364-Day Credit Agreement and for general corporate purposes. The Company also intends to terminate the Amended and Restated 364-Day Credit Agreement upon repayment. The offering is expected to close on or about June 8, 2020, subject to customary closing conditions.

Citigroup, BNP Paribas, BofA Securities, J.P. Morgan and Morgan Stanley are acting as joint lead book-running managers for the offering. Goldman Sachs & Co. LLC and Wells Fargo Securities are acting as joint book-running managers for the offering.

In its 49th year of service, Dallas-based Southwest Airlines Co. more than 4,000 weekday departures among a network of 101 destinations in the United States and 10 additional countries.