Alaska Air Sells Bonds, Loan to Refinance Hawaiian Debt (2)

Alaska Air Group Inc. on Tuesday sold around $2 billion of debt secured by its frequent flyer program, to refinance borrowings tied to its acquisition of airline Hawaiian Holdings Inc.

On Tuesday, Alaska Air subsidiary AS Mileage Plan IP Ltd. sold $1.25 billion of notes in two parts, according to a person with knowledge of the matter. The longer portion of the offering, a seven-year note, yielded 1.7 percentage point above Treasuries after earlier discussions for around 2.125 percentage points, said the person, who asked not to be identified as the details are private.

The same unit also sold a ...