Southwest Airlines Co. (NYSE: LUV) has announced the pricing of an underwritten public offering of USD 1,000,000,000 aggregate principal amount of its senior notes, consisting of USD 300,000,000 aggregate principal amount of 5.250% notes due 2025 and USD 700,000,000 aggregate principal amount of 5.125% Notes due 2027, the company said.
The 2025 notes will be issued at 106.768% of par and the 2027 notes will be issued at 105.170% of par, plus accrued interest, to yield 3.661% and 4.231% respectively.
The 2025 notes are being offered as an additional issuance of the Company´s 5.250% Notes due 2025, of which the Company issued USD 1.25 billion aggregate principal amount on May 4, 2020, and have identical terms, other than the issue date and issue price, as the initial notes of that series. The 2027 notes are being offered as an additional issuance of the Company´s 5.125% notes due 2027, of which the Company issued USD 1.3 billion aggregate principal amount on June 8, 2020, 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 for general corporate purposes, which may include, but are not limited to, repayment or redemption of unsecured indebtedness maturing in the next 12 months or other corporate obligations. The offering is expected to close on or about July 31, 2020, subject to customary closing conditions.
Goldman Sachs & Co. LLC and Wells Fargo Securities, LLC are acting as joint lead book-running managers for the offering. Comerica Securities, Inc., Cowen and Company, LLC and Penserra Securities LLC are acting as co-managers for the offering.
Dallas-based Southwest Airlines Co. operated more than 4,000 weekday departures among a network of 101 destinations in the United States and 10 additional countries in 2019.