Hawaiian Holdings, Inc. (Amex: HA; PCX) announced that its wholly owned subsidiary, Hawaiian Airlines, Inc., its existing Term A and Term B lenders, and certain additional lenders have amended Hawaiian's credit facilities to increase the facility by approximately $91 million. Hawaiian's credit facilities now consist of $135 million of term loans (a $62.5 million Term A loan and a $72.5 million Term B loan) and a $25 million revolving line of credit. Proceeds from the financing will be used to fund the purchase and retrofit of the four Boeing 767 aircraft recently acquired by Hawaiian, to redeem the Company's outstanding Subordinated Convertible Notes due 2010, and to acquire certain additional assets.
Mark Dunkerley, President and Chief Executive Officer, said, "We are very pleased with the support shown by all our lenders in working with Hawaiian Airlines on this transaction which will allow us to refinance our capital structure on attractive terms, including the elimination of potential dilution associated with the outstanding Convertible Subordinated Notes. Hawaiian Airlines is solidly positioned for future growth opportunities with the addition of four 767s and in excess of $125 million of unrestricted cash on hand."
The redemption of the Company's outstanding $52 million of Subordinated Convertible Notes, which is expected to occur late in the first quarter or early in the second quarter, will eliminate potential dilution of approximately 12 million shares which otherwise would have been issued to the holders of the Subordinated Convertible Notes upon conversion at $4.35 per share.
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Mark Dunkerley, President and Chief Executive Officer, said, "We are very pleased with the support shown by all our lenders in working with Hawaiian Airlines on this transaction which will allow us to refinance our capital structure on attractive terms, including the elimination of potential dilution associated with the outstanding Convertible Subordinated Notes. Hawaiian Airlines is solidly positioned for future growth opportunities with the addition of four 767s and in excess of $125 million of unrestricted cash on hand."
The redemption of the Company's outstanding $52 million of Subordinated Convertible Notes, which is expected to occur late in the first quarter or early in the second quarter, will eliminate potential dilution of approximately 12 million shares which otherwise would have been issued to the holders of the Subordinated Convertible Notes upon conversion at $4.35 per share.
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