Southwest increases cash cushion

Southwest Airlines has priced a new offering of 70 million shares of common stock at $28.50 per share – upsized from 55 million – and $2bn of convertible, five-year senior notes, at 1.250%, which was upsized from $1bn. The gross proceeds of both the common stock offering and the convertible notes offering provide Southwest with an expected cash cushion of approximately $4.0bn. Southwest has also granted the underwriters a 30-day option to purchase up to 10,500,000 additional shares of common stock at the public offering price and a 30-day option to purchase up to $300 million of additional convertible notes.