DALLAS – October 27, 2026 -- Southwest Airlines Co. (NYSE: LUV) priced an underwritten public offering of $1.25 billion in senior notes, split across two fixed-rate tranches maturing in 2029 and 2031.
Southwest splits the offering into $600 million at 5.750% and $650 million at 6.000%
The 2029 Notes total $600 million and carry a 5.750% rate. The 2031 Notes total $650 million and carry a 6.000% rate. The offering is expected to close on or about November 2, 2026, subject to customary closing conditions.
Proceeds may repay $300 million of 3.000% notes due November 15, 2026
Southwest plans to use net proceeds for general corporate purposes. These may include repaying at maturity all of its outstanding $300 million aggregate principal amount of 3.000% notes due November 15, 2026. Proceeds may also fund the repayment or redemption of other indebtedness or corporate obligations.
The new notes carry coupons roughly 2.75 to 3.00 percentage points above the 3.000% notes the airline may retire with the proceeds.
Five banks run the books on an SEC-registered deal
Barclays Capital Inc., BNP Paribas Securities Corp., Standard Chartered Bank, U.S. Bancorp Investments, Inc., and Wells Fargo Securities, LLC are joint book-running managers. A shelf registration statement for the securities has been filed with the U.S. Securities and Exchange Commission and has become effective. The offering may be made only by means of a prospectus supplement and an accompanying base prospectus, and a final prospectus supplement will be filed with the SEC.