Sun Country Airlines Holdings, Inc. Announces Launch Of Secondary Public Offering Of 4M Shares Of Common Stock And ~$5M Concurrent Share Repurchase
Portfolio Pulse from Benzinga Newsdesk
Sun Country Airlines Holdings, Inc. (SNCY) announced a secondary public offering of 4 million shares by an Apollo Global Management affiliate. The underwriters have an option to buy an additional 600,000 shares. Sun Country Airlines will not sell any shares nor receive proceeds from the offering. Concurrently, Sun Country Airlines will repurchase approximately $5 million of its stock at the same price as the offering, reducing the availability under its repurchase program. The repurchase will be funded from existing cash. Barclays and Morgan Stanley are the joint bookrunners and underwriters.
December 11, 2023 | 9:23 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
An affiliate of Apollo Global Management is selling 4 million shares of SNCY, which could indicate a reduction in Apollo's investment in Sun Country Airlines.
The sale of a significant number of shares by an affiliate of Apollo Global Management could suggest a scaling back of Apollo's investment in Sun Country Airlines. This might be perceived negatively by the market, potentially putting downward pressure on Apollo's stock in the short term.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60
NEUTRAL IMPACT
Sun Country Airlines is involved in a secondary offering and a concurrent share repurchase, which could indicate confidence in the company's value, potentially stabilizing the stock price.
The secondary offering does not dilute existing shareholders as Sun Country Airlines is not issuing new shares. The concurrent share repurchase shows management's confidence in the company's stock, which could be viewed positively by investors. However, the impact on the stock price may be neutral in the short term as the market absorbs the new shares.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100