Reported 2 months ago
JetBlue Airways has launched a $2.75 billion bond-and-loan sale backed by its loyalty program to bolster reserves and fund corporate purposes, facing downgrades from Moody's and S&P. The airline plans to sell $1.5 billion in bonds and $1.25 billion in a term loan, but shares dropped as much as 19% following the announcement. JetBlue's strategy involves leveraging its loyalty program as collateral, similar to actions taken by other major airlines during the pandemic.
Source: YAHOO