Copa Airlines (CM, Panamá City Tocumen International) parent company Copa Holdings plans to use cash it claims to have on hand to redeem USD350 million worth of 4.5% convertible bonds due in 2025 ahead of schedule, it announced in a statement on July 14.

The Panamanian carrier expects to redeem the bonds on September 18, offering to pay “a redemption price” which it described as “equal to 100% of the principal amount of the notes redeemed plus accrued and unpaid interest up to but excluding the redemption date.”

The airline also offered bondholders the option to convert the 2025 notes into common shares by September 15, at a rate of 20.1603 shares of Copa Holdings’ common stock per USD1,000 principal amount of notes, it said.

“Unless Copa defaults in making payment of the redemption price, interest on the notes will cease to accrue from and after the redemption date, and thereafter the only remaining right of a holder of the notes will be the right to receive payment of the redemption price upon surrender of notes to the paying agent,” the company explained.

United States-based Wilmington Trust, as trustee for the bonds, is sending a Notice of Full Redemption to all registered holders, Copa Holdings concluded.