AirCal to Sell Bonds to Overseas Investors

AirCal said it will raise more than $29 million through the sale of convertible subordinated debentures to a group of European underwriters. The bonds, which will not be sold to U.S. citizens, residents or corporations, will yield 5.75% and can be traded for common stock at a conversion price of $11.75 a share, which is 10.6% more than AirCal’s April 25 closing price of $10.625 a share. Officials of the Newport Beach airline said some of the proceeds from the offering will be used to help fund expansion of routes and flights.

Separately, AirCal said three new members have been elected to its board of directors: Robert E. Carlson, a partner in a Los Angeles law firm; John F. Grundhofer, executive vice president of Wells Fargo Bank and the bank’s Newport Beach-based senior executive officer for Southern California, and James D. Harper, president of Senior Corp.