JetBlue Said to Offer 2%-2.5% Coupon for $400M Convertible Bonds

JetBlue Airways Corp. is offering a 2% to 2.5% coupon on its proposed $400 million convertible bond issue, people familiar with the situation said.

• Co. is marketing the five-year notes, due 2029, with a conversion premium of 27.5%-32.5%, the people said, asking not to be identified as the information is private
• Representatives for JetBlue didn’t immediately respond to requests for comment
• Shares dropped as much as 14.05% on Monday morning
• Co. intends to grant initial purchasers the option to purchase up to an additional $60 million, according to an earlier statement
• Net proceeds to be used for purposes including repurchasing ...