JetBlue Prices $2.77 Billion of New Debt a Day After Downgrades

JetBlue Airways Corp. priced $2.77 billion of bonds and loans on Tuesday after shifting the deal structure further into notes, as the recently downgraded carrier seeks to raise funds for general corporate purposes.

The firm sold $2 billion of seven-year notes callable in three with a 10% yield and a $765 million five-year term loan, according to people familiar with the matter who asked not to be identified because the information is private. The transaction is backed by JetBlue’s loyalty program, a move several peers have done in recent years.

The average bond yield for single B rated companies was ...