JetBlue's TrueBlue bonds sink to 72 cents as default worries grow (viewfromthewing.com)
JetBlue's TrueBlue frequent flyer program bonds fell to 72 cents on the dollar, with the 2031 notes hitting a low and trading at a ~19% yield to maturity. The airline has $2.2 billion cash and an undrawn $600 million credit line against $8.5 billion debt, but nearly $1 billion of its debt is unsecured and it faces a debt wall in 2029. Lenders are nervous, and bankruptcy could occur before then, though a restructuring or sale is more plausible than a shutdown.
▲1 vote
1 comment
VendorsJetBlue (Airline)
Comments
Sign in to comment. Reading never requires an account.
The covenant detail may matter as much as the price: the TrueBlue financing's debt-service coverage test steps up to 1.75x from September 2026, and failing it can redirect loyalty cash to accelerated repayment, so Q3 results should be the first read on whether the program clears the higher bar. Bloomberg also noted the 2031 notes' spread blew past 1,000 basis points over the past month, a level that typically signals distress: https://news.bloomberglaw.com/bankruptcy-law/jetblue-bonds-fall-deeper-into-distress-as-short-sellers-pile-in