Sun Country Airlines Prices 4M Common Share Secondary Offering, And Concurrent $5M Share Repurchase Under Stock Repurchase Program
Portfolio Pulse from Benzinga Newsdesk
Sun Country Airlines has priced a secondary public offering of 4 million shares by an affiliate of Apollo Global Management funds. The offering is set to close on December 14, 2023. Concurrently, Sun Country will repurchase approximately $5 million of its shares at the same price the underwriters will buy from the Selling Stockholder.
December 12, 2023 | 7:52 am
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NEUTRAL IMPACT
Apollo Global Management is the Selling Stockholder in Sun Country Airlines' secondary offering, which may lead to a reduction in Apollo's stake in SNCY but does not directly affect Apollo's stock.
While Apollo is involved as the Selling Stockholder, the transaction is more directly related to SNCY's stock. The impact on APO's stock will depend on how the market views the sale in terms of Apollo's investment strategy and the proceeds from the sale.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Sun Country Airlines is conducting 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 may dilute existing shares, but the concurrent share repurchase shows management's confidence in the company's valuation, which could neutralize the dilution effect. The market's reaction will depend on the perception of the company's growth prospects and the price set for the offering.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100