Davis Polk advised the counterparty in connection with an accelerated share repurchase transaction entered into between the counterparty and JetBlue Airways Corporation (“JetBlue”), pursuant to which JetBlue is repurchasing $150 million of its common stock. Under the terms of the transaction, JetBlue will pay $150 million to the counterparty and will initially receive approximately 6 million shares. The total number of shares to ultimately be purchased by JetBlue pursuant to the transaction will generally be based on the average of the daily Rule 10b-18 volume weighted average prices of JetBlue’s common stock during the term of the transaction. Upon final settlement of the transaction, JetBlue may be entitled to receive additional shares of JetBlue’s common stock from the counterparty or, under certain circumstances pursuant to the terms of the transaction, JetBlue may be required to deliver shares or make a cash payment, at its option, to the counterparty. The transaction is expected to be completed by the end of the third quarter of 2015.

Headquartered in Long Island City, New York, JetBlue is New York’s Hometown Airline, and a leading carrier in Boston, Fort Lauderdale/Hollywood, Los Angeles (Long Beach), Orlando and San Juan. 

The Davis Polk equity derivatives team included partner Mark M. Mendez and associate Katharine O’Banion. All members of the Davis Polk team are based in the New York office.  

 

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