HAWAII

Mesa restructures senior notes

Mesa Air Group, parent of interisland carrier go!, said yesterday it has restructured some of its senior convertible notes due 2023 and 2024.

Under the new agreements, the note holders will waive the Jan. 31, 2009, put right for $15.6 million in principal at maturity of the 2023 notes and exchange $18.9 million in principal at maturity of the 2023 notes and $70.9 million in principal at maturity of the 2024 notes for $5.6 million in cash, 13.6 million shares of Mesa's common stock and $14.3 million in principal of the company's new 8 percent senior unsecured notes due 2012.

Following the exchange, and assuming no other note holders exercise their upcoming put rights, approximately $32.5 million in principal at maturity of the 2023 notes and $49.5 million in principal at maturity of the 2024 notes will remain outstanding.

NATION

After record low, mortgage rates rise

McLEAN, Va. » Rates on 30-year mortgages rose above 5 percent this week, ending a five-week run at record low levels, Freddie Mac reported yesterday.

Freddie Mac reported that average rates on 30-year fixed mortgages rose to 5.12 percent this week from a record low of 4.96 percent established last week. At this time last year, the 30-year fixed rate mortgage averaged 5.48 percent.

Last week's mark of 4.96 percent was the lowest since Freddie Mac started its survey in April 1971, Freddie Mac said.

The average rate on a 15-year fixed-rate mortgage rose to 4.8 percent, from 4.65 percent last week. The 15-year fixed rate averaged 4.95 percent at this time last year.

BRIEFCASE

THAIN RESIGNS: Former Merrill Lynch & Co. CEO John Thain resigned from Bank of America yesterday following news that Merrill Lynch had rushed out its year-end bonuses, paying them just before Bank of America completed its acquisition of Merrill Lynch and sought $20 billion in additional government bailout money.

DOUBLING DOWN: Lockheed Martin Corp. said yesterday that 2009 profit will be lower than forecast on rising pension costs, while Northrop Grumman Corp. will report a net loss for 2008 after taking a charge of as much as $3.4 billion to write down the value of acquisitions.