US Airways investor cashes in convertible notes
Investor swaps $46 million in US Airways convertible notes for stock worth $170 million
DALLAS (AP) -- US Airways Group Inc. has retired $46.1 million in convertible notes after the bondholder swapped them for shares worth nearly four times the principal amount of the notes.
The company issued nearly 10.1 million shares in exchange for the notes last Friday, when the shares closed at $16.93. That made the stock worth $170.8 million.
US Airways disclosed the deal in a regulatory filing Thursday. The investor was not identified.
The convertible notes carried 7.25 percent interest and were due to mature in 2014. Convertible notes usually can be turned into stock at the investor's discretion.
Shares of Tempe, Ariz.-based US Airways have increased fourfold since November 2011, when rival American Airlines parent AMR Corp. filed for bankruptcy protection. The two companies are seeking to merge and create the world's biggest airline.
US Airways shares fell 19 cents to $16.87 in midday trading Thursday, as broader market indexes declined.
