Virgin America preps IPO

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By admin July 28, 2014 11:45

Virgin America preps IPO

Virgin America has filed for an initial public offering of shares. Barclays and Deutsche Bank Securities are the lead underwriters.

Stock will be offered by Cyrus Capital Partners as well as by employee and holding companies. The number of shares on offer and the price have yet to be determined, although the registration statement filed with the US Securities & Exchange Commission states that the airline seeks to raise $115 million.

The document states that the proceeds from the sale will be used for “general corporate purposes, including working capital, sales and marketing activities, general and administrative matters and capital expenditures, including future flight equipment acquisitions, as well as for certain aircraft operating lease obligations”. Proceeds will also be used to “repay the principal and accrued interest due under certain of the Related-Party Notes held by Cyrus Capital and the Virgin Group in conjunction with the 2014 recapitalization”.

Virgin America CEO David Cush has stated that the IPO is considered unlikely to launch before late 2014, as the airline needs to remain focused on demonstrating sustained profit. The carrier posted a first-quarter net loss in 2014.

Click here for the offering prospectus

admin
By admin July 28, 2014 11:45