Spirit Airlines Essay

1507 WordsDec 30, 20127 Pages
EXECUTIVE SUMMARY Spirit Airlines (SAVE) is an ultra low-cost, low-fare based in Fort Lauderdale, Florida that provides affordable travel opportunities. The IPO for Sprit airlines was offered on June 11th, 2011. The price of the stock at the IPO date was of $12.00. According to NASDAQ.com, the money that was raised on the IPO was $187.2 million dollars, with 5 million dollars in expenses. After the underwriting cost eliminated they approximately raised171.0 million. After the IPO sale, the company decided to retain net proceeds of 150 million and the remaining was used to pay three individual, unaffiliated holders subordinated notes equal to 450,000. The remaining of the proceeds that they estimated to be 20 million were used…show more content…
They paid three unaffiliated holders of its subordinated notes an amount of $450,000, and $5.9 million in direct costs of the offering. They had a Recapitalization agreement, an in accordance of the agreement, all of the principal and accrued and unpaid interest on outstanding notes, to the extent not paid, totaling $279.2 million, as well as Class A and B Preferred stock outstanding, were exchanged 30.1 million shares of common stock at a share price of $12.00. SPIRIT AIRLINES TODAY In an article posted on the DailyFinance by Sean Williams, The Motley Fool, (Spirit Airlines Just Hit a 52-Week High: Can It Head Higher?) is commenting that the stock is making a major shift in dominating the market. Since the company went public in June 2011, its been dominating the competition. At the moment of this article Spirit Airlines held 343.0 million dollars in cash with $0 debt. The following table is from the article and you can see how Spirit is doing against its competitors. http://www.dailyfinance.com/2012/04/17/spirit-airlines-just-hit-a-52-week-high-can-it-he/ STOCK TREND SINCE ITS IPO Since the IPO the stock have had a generally speaking stable trend. According to Yahoo! Finance, the stock have grown +8.41% points since December 9th, 2011 until the market was closed on Friday December 7th, 2012. Daily the stock is raging from 16.91 to 17.19 per share, and in a 52 week range from 13.90 to 24.75. The following image is showing
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