(Bloomberg) -- The convertible bond offering in Southwest Airlines Co. has been increased by 75% to $1.75 billion, people familiar with the matter said.
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The offering range the coupon has also been cut by 50 basis points, the people added. The bonds are now expected to price between a 1.5% and 2.0% coupon, with a conversion premium between 30% and 35%. The size of the stock offering has not been changed, one of the people said.
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The airline, aiming to boost its balance sheet amid the biggest crisis in the industry’s history, had earlier sought to raise about $2.6 billion through stock and bond sales. Southwest shares gained 2.8% to $29.97 at 3:31 p.m. in New York.
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