Southwest to pay off $500 million in debt due this year

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Shares of Southwest Airlines Co. edged up 0.2% in premarket trading Tuesday, after the air carrier said it will redeem the $500 million in 2.650% notes due in 2020. The company said it will fund the redemption, which is expected to occur on Oct. 5, with cash on hand. Southwest said on Aug. 19 that it had $15.2 billion in cash and short-term investments, and said it expects it third-quarter cash burn to average about $20 million per day. Southwest’s stock has dropped 25.8% year to date through Monday, while the U.S. Global Jets ETF has shed 41.8% and the S&P 500 has gained 4.7%.
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