Alaska Air Group, Inc. Commences Private Placement of Floating Rate Senior Convertible Notes Due 2023.Business Editors SEATTLE--(BUSINESS WIRE)--March 17, 2003 Alaska Air Group, Inc. announced today that it is commencing a private placement of an expected $125 million of floating rate senior convertible notes due 2023. The private placement will be conducted pursuant to Rule 144A Rule 144A A Securities & Exchange Commission rule modifying a two-year holding period requirement on privately placed securities to permit qualified institutional buyers to trade these positions among themselves. of the Securities Act of 1933, as amended. An additional $25 million of notes may be sold to satisfy any overallotment. The notes would be convertible, at the option of the holder, only upon the occurrence of certain events into shares of ALK's common stock at a conversion rate to be determined at the time of pricing. The notes will be senior unsecured obligations and will rank equally with the company's future senior unsecured indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. . A portion of the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the offering will be used to purchase U.S. government securities, the proceeds of which will act as collateral for the first 3 years of interest payments on the notes. The company intends to use the remaining net proceeds from the offering for working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. and general corporate purposes. The notes and the common stock issuable upon conversion of the notes will not be registered under the Securities Act or any state securities laws and, unless so registered, may not be offered or sold in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or the solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of an offer to buy the notes. |
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