Spirit Airlines
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 to paid the principal of Tranche notes A and B, and to redeem Class B Preferred Stock.
As of today 12/08/12, the Spirit Airlines (SAVE) stock price is $17.14. Comparing the quarterly revenue growth from SAVE to the industry and its competitor, this quarter SAVE had a growth of 0.30, JetBlue had a growth 0.19, and the industry growth was 0.25. The IPO was a success, why, because they raised more money than they expected, and after the expenses they had the 150.0 million that was the objective and 21 million more to pay debt.
COMPANY AND INDUSTRY Spirit Airline, Inc., (SAVE) started as Clipper Trucking Company in 1964. The airline service was founded in 1980 in Macomb County, Michigan as Charter One. Its operating base is currently in Fort Lauderdale and Detroit Metropolitan Wayne County Airport. It’s focus cities are Dallas/Fort Worth International Airport, O’Hare International Airport in Chicago and McCarran International Airport in Las Vegas. The parent company is Indigo Partners. In 2007 Spirit announced to transition to be an ultra low cost carrier, which meant charging less for checked bags and low prices in their travel fares.
SEC Filings Looking to the 10-Q filling of Spirit Airlines, what I find
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 to paid the principal of Tranche notes A and B, and to redeem Class B Preferred Stock.
As of today 12/08/12, the Spirit Airlines (SAVE) stock price is $17.14. Comparing the quarterly revenue growth from SAVE to the industry and its competitor, this quarter SAVE had a growth of 0.30, JetBlue had a growth 0.19, and the industry growth was 0.25. The IPO was a success, why, because they raised more money than they expected, and after the expenses they had the 150.0 million that was the objective and 21 million more to pay debt.
COMPANY AND INDUSTRY Spirit Airline, Inc., (SAVE) started as Clipper Trucking Company in 1964. The airline service was founded in 1980 in Macomb County, Michigan as Charter One. Its operating base is currently in Fort Lauderdale and Detroit Metropolitan Wayne County Airport. It’s focus cities are Dallas/Fort Worth International Airport, O’Hare International Airport in Chicago and McCarran International Airport in Las Vegas. The parent company is Indigo Partners. In 2007 Spirit announced to transition to be an ultra low cost carrier, which meant charging less for checked bags and low prices in their travel fares.
SEC Filings Looking to the 10-Q filling of Spirit Airlines, what I find
Bibliography: 1. Williams, Sean. (March 2012). Spirit Airlines Just Hit a 52-Week High: Can it head higher?. Retrieved on December 8, 2012. http://www.dailyfinance.com/2012/04/17/spirit-airlines-just-hit-a-52-week-high-can-it-he/ 2