great news, for some!!!
Public IPO
By JOHN KELL
Spirit Airlines Inc. filed plans to hold an initial public offering of up to $300 million, with the Florida-based airline retaining about half of the net proceeds.
Spirit, which provides travel to and from South Florida, the Caribbean and Latin America, offers low-priced basic service combined with a range of optional additional fees, targeting price-sensitive travelers.
Although many carriers suffered from volatility in fuel costs and the severe economic recession, Spirit maintained relatively stable unit revenue while reducing costs, allowing it to remain profitable in the past three full years.
However, for the six months ended June 30, Spirit swung to a loss , as operating expenses jumped on an increase in fuel and wage costs. Total revenue grew 2% to $357.4 million.
According to the company's regulatory filing, it expects to retain $150 million from the offering. The remaining proceeds will be used to pay a $1.6 million termination fee with Indigo Partners LLC, which acquired a majority stake in Spirit in 2006. Other proceeds will be used to repay outstanding notes.
Spirit is the largest carrier at Fort Lauderdale/Hollywood International Airport, as measured by passengers. It also has a significant presence in Atlantic City, N.J., Detroit and Myrtle Beach, S.C.
More than 100 companies have filed plans with the Securities and Exchange Commission to hold IPOs and are currently working to complete the process. But a number of companies have faced challenges as they go public, with many downsizing or delaying their plans.
Write to John Kell at
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