JetBlue’s Newly Allocated Bond Falls in First Day of Trading

JetBlue Airways Corp.’s newly minted junk bond is falling in the US high-yield market on its first trading day after the airline priced a $2.77 billion debt deal and shifted the structure into primarily bonds Tuesday.

• The 9.875% note due in 2031 fell 0.86 cents on the dollar to 98.89 cents early Wednesday with more than 100 trades as of 9:57 a.m. in New York, according to Trace data
• The airline sold $2 billion of seven-year notes with a 10% yield and a $765 million five-year term loan, backed by its loyalty program
• On Monday after the deal was ...