Publications
Publications
- May 2007 (Revised July 2007)
- HBS Case Collection
JetBlue: Prepare for Financing
Abstract
The CFO of JetBlue is trying to decide which of two financing proposals to pursue. A straight equity issue will dilute his principal shareholders' ownership, but seems like the safer alternative in an industry that is notorious for its high failure rate. On the other hand, a convertible debt alternative seems less dilutive, and cheaper, but brings with it an increased risk of default and financial problems. Which option should John Owen pursue?
Keywords
Decision Choices and Conditions; Private Equity; Public Equity; Financing and Loans; Air Transportation Industry; United States
Citation
El-Hage, Nabil N., Darren Robert Smart, and Christopher Edward James Payton. "JetBlue: Prepare for Financing." Harvard Business School Case 207-061, May 2007. (Revised July 2007.)