JetBlue (NASDAQ:JBLU) shares fell sharply on Monday after the airline announced the issuance of $400 million in senior secured notes.

JetBlue is selling $400 million of senior secured notes due 2029. In addition, initial investors in this offering will have a 13-day option to purchase an additional $60 million of senior secured notes.

JetBlue plans to use a portion of the proceeds from the offering to repurchase its 0.50% senior convertible notes due 2026 and use the remainder for general corporate purposes.

JetBlue also announced the issuance of a second senior secured notes offering in combination with its new Cayman Islands equity partnership-exempt limited partnership and an indirect wholly-owned subsidiary, JetBlue Loyalty, LP.

It includes $1.5 billion of senior secured notes due 2031. It also covers a proposed $1.25 billion senior secured Term Loan B due 2029.

JBLU shares affected by downgrades

Finally, today’s news surrounding JBLU shares has led to downgrades by analysts, with the three major rating agencies subsequently lowering their ratings for the company’s shares.

All this news caused JBLU’s share price to fall 20.6% on Monday afternoon.

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At the time of publication, William White had no position (either directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing guidelines.

At the time of publication, the editor in charge did not hold any positions (either directly or indirectly) in the securities mentioned in this article.