June 3, 2009 (FinancialWire) — JetBlue Airways Corp. (NASDAQ: JBLU) said it plans to make concurrent offerings of 20 million shares of common stock and $150 million aggregate principal amount of convertible debentures.

Morgan Stanley & Co. (NYSE: MS) is acting as the sole book-running manager for both offerings, with Goldman, Sachs & Co. (NYSE: GS) and J.P. Morgan Securities (NYSE: JPM) acting as co-managers for the debenture offering.

The debentures are to be divided into two series, each with an aggregate principal amount of $75 million and maturing in 2039.

JetBlue plans to grant the underwriters of the common stock and the debentures a 30-day over-allotment option to purchase up to an additional three million shares of common stock and up to an additional $11.25 million principal amount of the debentures of each series.

In connection with the common stock offering, in order to maintain Deutsche Lufthansa AG’s current ownership position in JetBlue, the underwriter would reserve up to 15.6% of the offered shares for sale to Lufthansa, and Lufthansa would have an option to purchase up to 15.6% of the over-allotment shares from JetBlue, depending on the extent to which the underwriter exercises its over-allotment option.

The debentures of each series will be convertible into JetBlue common stock at the option of their holders. JetBlue plans to use the proceeds from the offerings for general corporate purposes.

New York-based JetBlue Airways currently serves 55 cities with 600 daily flights. The company will begin service to Los Angeles International Airport on June 17 and to Baltimore on September 9. The airline also plans to begin service to Barbados and Saint Lucia in October, subject to receipts of government operating authority.

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