Mesa Airlines: I'll Buy 100 Shares Please; Here's My Check for $18

I wish I had paid more attention back when I worked for the Wall Street Journal, and then maybe I would understand what the hell Mesa Air Group, the parent of greatly troubled Mesa Airlines, is talking about in this statement today, which says:

"Mesa Air Group Inc. said that the number of shares of its common stock issuable on January 31, 2009 in exchange for each $1,000 principal amount at maturity of its Senior Convertible Notes due 2023 ("2023 Notes") is 2,525 shares. This number is based upon the average closing price of the Company's common stock for the five trading days ended January 28, 2009.

"Only those holders of 2023 Notes that entered into forbearance agreements with the Company have the put rights referred to above. In addition, as disclosed in the Company's press release issued on January 22, 2009, certain of the holders that entered into forbearance agreements have elected to enter into new agreements with the Company with respect to their 2023 Notes, pursuant to which these holders have agreed not to require the Company to repurchase their 2023 Notes on January 31, 2009."

Man, is that good or bad news for the people who fly Mesa?

All's I know is that Mesa shares closed today at, ahhhh, 18 cents, and its market capitalization is $5 million.

From Mesa's boilerplate:

"Mesa operates 159 aircraft with approximately 800 daily system departures to 124 cities, 38 states, the District of Columbia, Canada, and Mexico. Mesa operates as Delta Connection, US Airways Express and United Express under contractual agreements with Delta Air Lines, US Airways and United Airlines, respectively, and independently as Mesa Airlines and go!. In June 2006 Mesa launched inter-island Hawaiian service as go!. This operation links Honolulu to the neighbor island airports of Hilo, Kahului, Kona and Lihue. The Company, founded by Larry and Janie Risley in New Mexico in 1982, has approximately 4,100 employees ..."

[Update: Good thing I don't still work for the Wall Street Journal. As a reader points out (see comment), 18 cents times 100 is $18, not $1.80, as the headline (now fixed) originally said.]

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