Mesa Restructures $100M Note Holder Debt

As indicated during its recent fourth quarter conference call, Mesa Air Group entered into separate agreements with certain holders of its Senior Convertible Notes Due 2023 and certain holders of its Senior Convertible Notes Due 2024 to waive the January 31, 2009 put right for $15.6 million in aggregate principal amount at maturity of the 2023 Notes and exchange $18.9 million in aggregate principal amount at maturity of the 2023 Notes and $70.9 million in aggregate principal amount at maturity of the 2024 Notes for an aggregate of $5.6 million in cash, 13.6 million shares of the company's common stock and $14.3 million in aggregate principal amount of the company's new eight percent senior unsecured notes due 2012. Following the exchange, and assuming no other holders exercise their upcoming put rights, approximately $32.5 million in aggregate principal amount at maturity of the 2023 Notes ($13.4 million of put value on January 31, 2009) and $49.5 million in aggregate principal amount at maturity of the 2024 Notes ($28.9 million of put value on February 10, 2009) will remain outstanding. While Mesa expects to close the deals, it said they are subject to conditions, including, without limitation, the negotiation of mutually acceptable definitive agreements. Mesa intends to continue to engage in discussions with certain holders of its 2023 and 2024 Notes regarding restructuring such obligations.
"We are pleased to have reached agreement with a significant portion of our note holders under terms which we believe are in the best interest of all parties. We are continuing to negotiate with certain of the remaining holders regarding restructuring such obligations. We appreciate the willingness of our bondholders to work with us through this difficult situation and remain optimistic that the company will be successful in the long term." said Chair and CEO Jonathan Ornstein.