Airtran Raising $100,000,000
#1
Airtran Raising $100,000,000
Any thoughts on why Airtran is raising capital again? Is Airtran refinacing old debt or issuing new debt and if so why?
$100,000,000
AIRTRAN HOLDINGS, INC.
5.25% Convertible Senior Notes due 2016
We are offering $100,000,000 aggregate principal amount of our 5.25% Convertible Senior Notes due 2016. We will pay interest on the notes semi-annually, in arrears, on each May 1 and November 1, beginning on May 1, 2010 to the holders of record at the close of business on the preceding April 15 and October 15, respectively. The notes mature on November 1, 2016.
Holders may convert their notes into a number of shares of our common stock determined as set forth in this prospectus supplement, which we refer to as the conversion rate, at their option on any day to, and including, the business day prior to the maturity date. The conversion rate will be 164.0420 shares per $1,000 principal amount of notes (equal to a conversion price of approximately $6.10 per share), subject to adjustment upon the occurrence of certain events.
Upon the occurrence of a fundamental change (as defined herein), holders may require us to repurchase some or all of their notes for cash at a price equal to 100% of the principal amount of the notes being repurchased, plus accrued and unpaid interest, if any. In addition, if certain events constituting a make-whole fundamental change (as defined herein) occur, we may be required in certain circumstances to increase the conversion rate for any notes converted in connection with such make-whole fundamental change by a specified number of shares of our common stock. We may not redeem the notes prior to maturity.
The notes will be our senior unsecured obligations and will rank equally with all of our existing and future senior unsecured indebtedness, except as described below. Our obligations under the notes will not be guaranteed by, and will be effectively subordinated in right of payment to, all existing and future obligations of our subsidiaries.
Concurrently with this offering of notes, we are offering, in an offering registered under the Securities Act of 1933, as amended (the “Securities Act”), and by means of a separate prospectus supplement, up to 9,842,520 shares of our common stock (or 11,318,898 shares if the underwriters exercise their over-allotment option in full). We expect the closing of the common stock offering to be concurrent with the closing of this offering. However, neither this offering nor the common stock offering is contingent upon the other.
The notes are a new issue of securities for which there currently is no market. We do not intend to apply for listing of the notes on any national securities exchange or for the inclusion of the notes on any automatic quotation system. Our common stock is listed on the New York Stock Exchange under the symbol “AAI.” The last reported sale price of our common stock on the New York Stock Exchange on October 7, 2009 was $5.08 per share.
Investing in the notes involves risks. See “ Risk Factors ” beginning on page S-6 of this prospectus supplement.
PRICE: 100% OF PRINCIPAL AMOUNT AND ACCRUED INTEREST, IF ANY, FROM OCTOBER 14, 2009
Price to
Public
Underwriting
Discounts
and
Commissions
Proceeds to
Company
Per Note
100 % 2.75 % 97.25 %
Total
$100,000,000 $2,750,000 $97,250,000
The underwriters have the option, exercisable within 30 days from the date of this prospectus supplement, to purchase up to an additional $15,000,000 aggregate principal amount of the notes solely to cover over-allotments, if any.
The Securities and Exchange Commission and state securities regulators have not approved or disapproved these securities or determined if this prospectus supplement or the accompanying prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
Delivery of the notes in book-entry form will be made only through The Depository Trust Company on or about October 14, 2009. SkyWorks Securities, LLC has acted as financial advisor to AirTran in connection with this offering.
$100,000,000
AIRTRAN HOLDINGS, INC.
5.25% Convertible Senior Notes due 2016
We are offering $100,000,000 aggregate principal amount of our 5.25% Convertible Senior Notes due 2016. We will pay interest on the notes semi-annually, in arrears, on each May 1 and November 1, beginning on May 1, 2010 to the holders of record at the close of business on the preceding April 15 and October 15, respectively. The notes mature on November 1, 2016.
Holders may convert their notes into a number of shares of our common stock determined as set forth in this prospectus supplement, which we refer to as the conversion rate, at their option on any day to, and including, the business day prior to the maturity date. The conversion rate will be 164.0420 shares per $1,000 principal amount of notes (equal to a conversion price of approximately $6.10 per share), subject to adjustment upon the occurrence of certain events.
Upon the occurrence of a fundamental change (as defined herein), holders may require us to repurchase some or all of their notes for cash at a price equal to 100% of the principal amount of the notes being repurchased, plus accrued and unpaid interest, if any. In addition, if certain events constituting a make-whole fundamental change (as defined herein) occur, we may be required in certain circumstances to increase the conversion rate for any notes converted in connection with such make-whole fundamental change by a specified number of shares of our common stock. We may not redeem the notes prior to maturity.
The notes will be our senior unsecured obligations and will rank equally with all of our existing and future senior unsecured indebtedness, except as described below. Our obligations under the notes will not be guaranteed by, and will be effectively subordinated in right of payment to, all existing and future obligations of our subsidiaries.
Concurrently with this offering of notes, we are offering, in an offering registered under the Securities Act of 1933, as amended (the “Securities Act”), and by means of a separate prospectus supplement, up to 9,842,520 shares of our common stock (or 11,318,898 shares if the underwriters exercise their over-allotment option in full). We expect the closing of the common stock offering to be concurrent with the closing of this offering. However, neither this offering nor the common stock offering is contingent upon the other.
The notes are a new issue of securities for which there currently is no market. We do not intend to apply for listing of the notes on any national securities exchange or for the inclusion of the notes on any automatic quotation system. Our common stock is listed on the New York Stock Exchange under the symbol “AAI.” The last reported sale price of our common stock on the New York Stock Exchange on October 7, 2009 was $5.08 per share.
Investing in the notes involves risks. See “ Risk Factors ” beginning on page S-6 of this prospectus supplement.
PRICE: 100% OF PRINCIPAL AMOUNT AND ACCRUED INTEREST, IF ANY, FROM OCTOBER 14, 2009
Price to
Public
Underwriting
Discounts
and
Commissions
Proceeds to
Company
Per Note
100 % 2.75 % 97.25 %
Total
$100,000,000 $2,750,000 $97,250,000
The underwriters have the option, exercisable within 30 days from the date of this prospectus supplement, to purchase up to an additional $15,000,000 aggregate principal amount of the notes solely to cover over-allotments, if any.
The Securities and Exchange Commission and state securities regulators have not approved or disapproved these securities or determined if this prospectus supplement or the accompanying prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
Delivery of the notes in book-entry form will be made only through The Depository Trust Company on or about October 14, 2009. SkyWorks Securities, LLC has acted as financial advisor to AirTran in connection with this offering.
#2
I bet you this is how it went down
YouTube - Austin Powers - 100 billion dollars
And then After Approval
http://www.youtube.com/watch?v=7edeO...eature=related
YouTube - Austin Powers - 100 billion dollars
And then After Approval
http://www.youtube.com/watch?v=7edeO...eature=related
#3
Can't abide NAI
Joined APC: Jun 2007
Position: Douglas Aerospace post production Flight Test & Work Around Engineering bulletin dissembler
Posts: 11,989
Any thoughts on why Airtran is raising capital again? Is Airtran refinacing old debt or issuing new debt and if so why?
$100,000,000
AIRTRAN HOLDINGS, INC.
5.25% Convertible Senior Notes due 2016
We are offering $100,000,000 aggregate principal amount of our 5.25% Convertible Senior Notes due 2016.
$100,000,000
AIRTRAN HOLDINGS, INC.
5.25% Convertible Senior Notes due 2016
We are offering $100,000,000 aggregate principal amount of our 5.25% Convertible Senior Notes due 2016.
I certainly understand AirTran's action - but if anyone locks in on the other side of the deal they are idiots.
#5
I bet you this is how it went down
YouTube - Austin Powers - 100 billion dollars
And then After Approval
YouTube - Dr Evil's Laughing Scene
YouTube - Austin Powers - 100 billion dollars
And then After Approval
YouTube - Dr Evil's Laughing Scene
#6
Gets Weekends Off
Joined APC: Jul 2009
Posts: 624
I suspect that airtran is putting out a 100,000,000 debt program to divert attention away from the fact that they are also diluting their shares by more than 10% with a concurrent common stock offering. Most people will jump all over the stock, while the 5 1/4's die on the vine.
Nothing against the airtran guys, just reading it like I see it. Airtran probably has some large debt payments to make in the 2nd and 3rd quarters of 2010, and these infusions of cash will do some balance sheet repair on the liquidity side.
Nothing against the airtran guys, just reading it like I see it. Airtran probably has some large debt payments to make in the 2nd and 3rd quarters of 2010, and these infusions of cash will do some balance sheet repair on the liquidity side.
#7
Can't abide NAI
Joined APC: Jun 2007
Position: Douglas Aerospace post production Flight Test & Work Around Engineering bulletin dissembler
Posts: 11,989
It would have to be an astronomical rate for me to get over the inflation risk. However, those playing with taxpayer's money that they did not earn and that they are not really held responsible for will probably bite. They don't know what else to do with it.
#8
Inflation likely? Hope not
A better question - why would anyone buy that? Even if you were bullish on AirTran (which I sort of am) you have to believe that the value of the dollar is stable.
I certainly understand AirTran's action - but if anyone locks in on the other side of the deal they are idiots.
I certainly understand AirTran's action - but if anyone locks in on the other side of the deal they are idiots.
I am uncertain of the dollar. Logic dictates it should devalue IE inflation. That said I did not expect housing bubble to last nearly as long as it did. I did take advantage of low 30 fixed interest rates. If in flation does rise I will be good because the it will cost less to pay off my loans. That said it does me no good if I do not get cost of living adjustments from the company (we know that will never happen)
Then again what currency is strong Chinese Yuan? I am not sure the world is ready to do business in Yuan. We will see. I hope the value remains stable and Obama shuts down the printing presses. Then again I do not have $100,000,000 to invest. I think I saw only $19,500,000 has been picked up so far.
#9
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
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
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