Shares in Jet2 PLC (LON:JET2) climbed 5.61% on Tuesday as the company initiated to repurchase the remaining £304 million of its 1.625% senior unsecured convertible bonds.

The bond tender process began today and is set to close at 4:30 pm UK time.

"We estimate the remaining convertible post-conversion represents c8% of the total diluted share capital," Morgan Stanley (NYSE:MS) said in a note.

"The company has pointed to the commencement of the convertible repurchases as a sign that it is willing to do more on shareholder returns, and while investors generally would like to see more of a pure buyback, the step up in the magnitude this morning should be taken well."

The company plans to repurchase up to 100% of the outstanding bond principal. If the buyback reduces the remaining bonds to less than 15% of the original issuance, the company intends to redeem the rest at face value plus accrued interest.

The final repurchase price is to be announced on 12 March, while settlement is expected on 18 March.

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