Southwest Airlines Co. (NYSE: LUV) (the "Company") today announced that it has priced an underwritten public offering of $1,000,000,000 aggregate principal amount of its senior notes, consisting of $300,000,000 aggregate principal amount of 5.250% Notes due 2025 (the "2025 Notes") and $700,000,000 aggregate principal amount of 5.125% Notes due 2027 (the "2027 Notes," and, collectively with the 2025 Notes, the "Notes"). The 2025 Notes will be issued at 106.768% of par and the 2027 Notes will be issued at 105.170% of par, plus accrued interest, to yield 3.661% and 4.231% respectively.
The 2025 Notes are being offered as an additional issuance of the Company's 5.250% Notes due 2025, of which the Company issued $1.25 billion aggregate principal amount on May 4, 2020, and have identical terms, other than the issue date and issue price, as the initial notes of that series. The 2027 Notes are being offered as an additional issuance of the Company's 5.125% Notes due 2027, of which the Company issued $1.3 billion aggregate principal amount on June 8, 2020, and have identical terms, other than the issue date and issue price, as the initial notes of that series.
The Company expects to use the net proceeds from the offering for general corporate purposes, which may include, but are not limited to, repayment or redemption of unsecured indebtedness maturing in the next 12 months or other corporate obligations. The offering is expected to close on or about July 31, 2020, subject to customary closing conditions.
Goldman Sachs & Co. LLC and Wells Fargo Securities, LLC are acting as joint lead book-running managers for the offering. Comerica Securities, Inc., Cowen and Company, LLC and Penserra Securities LLC are acting as co-managers for the offering. A shelf registration statement relating to these securities has been filed with the U.S. Securities and Exchange Commission ("SEC") and has become effective. The offering may be made only by means of a prospectus supplement and an accompanying base prospectus. The preliminary prospectus supplement and accompanying base prospectus relating to the offering have been filed, and a final prospectus supplement will be filed, with the SEC and will be available on the SEC's website at www.sec.gov. Copies of the preliminary prospectus supplement and accompanying base prospectus relating to the offering may be obtained from (1) Goldman Sachs & Co. LLC, 200 West Street, New York, NY 10282, Attention: Prospectus Department, by telephone: 1-866-471-2526, by facsimile: 212-902-9316 or by email: email@example.com and (2) Wells Fargo Securities, LLC, 608 2nd Avenue South, Suite 1000 Minneapolis, MN 55402, Attention: WFS Customer Service, by telephone: 1-800-645-3751 or by email: firstname.lastname@example.org.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration and qualification under the securities laws of such state or jurisdiction.