The Bank of New York Mellon Global Corporate Trust reported that $58.9 million in aggregate principal amount of outstanding notes had been validly tendered for purchase as of 5:00 P.M. Eastern on July 31. As a result and pursuant to the terms of the tender offer, the ExpressJet will issue 161,494,295 shares of common stock in payment of the repurchase price for the principal amount of the notes tendered and to settle accrued and unpaid interest due August 1. The company’s offer of its tender offer with respect to $128.2 million aggregate principal amount of its 4.25 percent Convertible Notes Due 2023, expired July 31.
Following the completion of the tender offer, the company will have $69.3 million aggregate principal of its 4.25 percent Convertible Notes due 2023 remaining outstanding. Note holders of record on August 2, 2008, will automatically receive the benefits of the supplemental indenture that becomes effective the same day. From August 2 forward, the notes will be referred to as 11.25 percent Convertible Notes due 2023.
Required by the indenture governing the notes, the exchange will yield 2,684 shares for each $1,000 in principal amount tendered for holders who tender and do not withdraw their notes prior to the expiration date of the tender offer. This calculation is based upon 97.5 percent of the average closing sale price of the common stock for the five consecutive trading days ending on July 29, 2008, which closing prices were $0.43, $0.36, $0.38, $0.37 and $0.37, respectively, as reported by the New York Stock Exchange Group.
The company previously announced its intention to unilaterally amend the indenture governing the notes in order to provide improved terms and additional flexibility for the note holders. These benefits will apply to any note holder holding the notes on August 2, 2008 following the consummation of the company's exchange offer. Those note holders will automatically receive:
• Security based on a pro-rata amount of collateral appraised at approximately $181 million, including approximately $96 million in spare parts and $85 million of spare engines;
• Coupon increased from 4.25 percent to 11.25 percent over the remaining note term; and
• An additional put right in three years or on August 1, 2011