The way is open for increase in JetBlue and Southwest profits; Heathrow saga rolls on

As you may recall this week, Intrepid Aviation Group Holdings priced an offering of US$120m in aggregate principal amount of senior notes due 2017. The Notes will be co-issued by Intrepid’s wholly-owned subsidiary, Intrepid Finance Co and will bear interest at a rate of 8.250% per year and were priced at par. Now the follow-on question from this has been: Why are Intrepid issuing unsecured debt? The answer is fairly straight forward – this issuance is a very short-term financing measure and it is priced inside of where current Intrepid bonds are trading.  This financing arrangement is all about the