JetBlue Airways in Talks to Sell Junk Bonds Yielding Up to 10%

JetBlue Airways Corp. is in discussions with lenders to sell $1.5 billion of high-yield bonds that would yield about 9.5% to 10%, according to people with knowledge of the matter.

The airline is also considering a $1.25 billion leveraged loan with a margin of 5 to 5.5 percentage points over the Secured Overnight Financing Rate, the people said, who asked not to be named discussing a private transaction.

Demand has already been strong for the bond, with orders exceeding $1.5 billion during premarketing, the people said. The debt package could launch as soon as Aug. 12, though discussions are ongoing ...