The FINANCIAL -- US Airways Group, Inc. (NYSE:LCC) on September 1 announced that holders of US Airways Group's 7% Senior Convertible Notes due 2020 (the "Securities") have the right to surrender their Securities for purchase by US Airways pursuant to the terms of the indenture for the Securities (the "Put Option"). The Put Option expires on September 29, 2010.

The Put Option entitles each holder of the Securities to require US Airways Group to purchase all or any part of such holder's Securities at a purchase price equal to 100% of the principal amount, plus accrued and unpaid interest (if any).

"Under the terms of the Securities, US Airways has the right to pay the purchase price in cash, common stock or a combination thereof. US Airways intends to pay the purchase price solely with cash. If all outstanding Securities are surrendered for purchase pursuant to the Put Option, the aggregate purchase price will be approximately $73.6 million. Holders that do not surrender their Securities for purchase pursuant to the Put Option will maintain the right to convert their Securities, subject to the terms, conditions and adjustments applicable to the Securities," US Airways Group reported.

Also in accordance with the terms of the Securities, holders of record as of September 15, 2010 will receive payment on September 30, 2010 of the regularly scheduled interest payment for interest accrued up to, but not including, the purchase date.

The opportunity to surrender Securities for purchase pursuant to the Put Option will commence on Wednesday, September 1, 2010, and will terminate at midnight, Eastern Time, on Wednesday, September 29, 2010. In order to exercise the Put Option, a holder must follow the procedures set forth in the applicable notice to holders. Holders may withdraw any Securities previously surrendered for purchase at any time prior to midnight, Eastern Time, on Wednesday, September 29, 2010.

US Airways will file a Tender Offer Statement on Schedule TO related to the Put Option with the Securities and Exchange Commission later today. In addition, documents specifying the terms, conditions and procedures for surrendering and withdrawing Securities for purchase will be available through The Depository Trust Company and the paying agent. Neither US Airways nor its board of directors or employees have made or are making any representation or recommendation as to whether or not any holder should surrender any Securities.

Related Stories

• Flash Sale Halo Effect Lighting Up Full-Priced Online Luxury Category
• Marriott International Declares Cash Dividend; Board Increases Stock Repurchase Authorization
• Hotel Indigo opens in the centre of Berlin