More on Stock sale
Airlines slip with wider market, led by UAL
6:46p ET October 7, 2009 (MarketWatch)
NEW YORK (MarketWatch) -- Airline shares ended slightly lower Wedensday as pressure in the broader stock market put an end to three sessions of modest gains.
Meanwhile, the weakness in AirTran shares came about as the low-cost carrier announced an offering of 9 million shares, with a 30-day option for underwriters to purchase an additional 1.4 million shares.
Additionally, the Orlando, Fla.-based carrier will issue $65 million in senior notes due 2016, and intends to offer underwriters a 30-day option to purchase an additional $11.3 million in notes solely to cover over allotments.
AirTran said it would use proceeds for general corporate purposes.
Well la de da, "general corporate purposes" giving corporate bonuses?
Who would buy stock in a company that keeps driving the price down by issuing more stock? Share holders will be voting their displeasure if the company does not specify what are "general corporate purposes"?
When you consider AAI is owned 85% by institutional investors there could be some changes in the offing