Southwest Convertible Bond Sale Is Said Upsized to $1.75 Billion

(Bloomberg) -- The convertible bond offering in Southwest Airlines Co. has been increased by 75% to $1.75 billion, people familiar with the matter said.

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.

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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