AirTran Holdings Inc. (NYSE: AAI) has priced $65 million a 5 1/2% convertible Senior Notes due 2015. The company is also given underwriters a 30 day overallotment option for $9.75 million additional in notes. Morgan Stanley was the lead underwriter and Credit Suisse served as co-lead manager. The equivalent conversion price is $3.84 per share.
The airline has concurrently priced 22.3125 million shares of its common stock price of $3.20 per share. Underwriters have been granted more than 3.3 million shares as an overallotment option.
AirTran has a market cap of $294 million and shares closed at $3.20. While the company lost $35 million last quarter, it had over $360 million in cash and equivalents at the end of 2007.
As you can see by their wide trading range of $3.13 to $12,65, they are also not immune from high oil prices and a tightening economy.
You can join our open email distribution list to hear about other special financings, IPO’s, spin-offs, secondary offerings, restructurings, and other special situations.
Jon C. Ogg
April 25, 2008