03:43 PM EDT, 08/12/2024 (MT Newswires) -- (Updates with the latest stock price movement in the headline and first paragraph.)

JetBlue Airways ( JBLU ) shares slumped nearly 20% in recent Monday trading after the air carrier announced plans for a $400 million private placement of convertible senior notes due 2029.

The company expects to grant initial purchasers a 13-day option to buy up to an additional $60 million of the notes.

Net proceeds are expected to be used to repurchase a portion of its existing 0.50% senior convertible notes due 2026 and for general corporate purposes, JetBlue ( JBLU ) said.

Separately, JetBlue ( JBLU ) its subsidiary JetBlue Loyalty plan to launch a private offering of $1.5 billion of senior secured notes due 2031 and a $1.25 billion senior secured Term Loan B due 2029, the company said.

Proceeds from the Loyalty notes and term loan are expected to be used for general corporate purposes, JetBlue ( JBLU ) said.

Price: 4.86, Change: -1.19, Percent Change: -19.67