Raising More Money

[BoeingBoy]

WASHINGTON, Sept 20 (Reuters) - US Airways Group Inc. (UAIRQ.OB: Quote, Profile, Research) on Tuesday said it planned to raise $275 million through stock and convertible bond sales as it emerges from bankruptcy and combines with America West Airlines Inc.

Story

Jim

 

[BoeingBoy]

US Airways Group Inc to offer 8.5m common stock shares in public offering

05:41 a.m. 09/28/2005 Provided by

Sep 28, 2005 (M2 EQUITYBITES via COMTEX) -- US Airways Group Inc (LCC) announced on Tuesday (27 September) the public offering of 8,500,000 shares of common stock at a price of USD19.30 per share.

The company has granted to the underwriters an option to purchase an additional 1,275,000 shares of common stock solely to cover over-allotments.

According to the company the net proceeds of the public offering will be used for general corporate purposes, including the possible redemption or repurchase of other securities of the company, including the possible repurchase of the warrants held by the Air Transportation Stabilization Board.

The offering is expected to close on 30 September 2005.
-------------

US Airways Group Inc to carry out private placement of USD125m of senior convertible notes

05:46 a.m. 09/28/2005 Provided by

Sep 28, 2005 (M2 EQUITYBITES via COMTEX) -- US Airways Group Inc (LCC) announced on Tuesday (27 September) the pricing of a private placement of USD125m issue price of 7% senior convertible notes due 2020.

The notes will bear interest at a fixed rate of 7% per annum and are convertible into the company's common stock at a conversion ratio of 41.4508 shares per USD1,000 principal amount of notes, subject to certain conversion rate adjustments. This represents a conversion price of USD24.12 per share or a 25% premium over the New York Stock Exchange closing price of USD19.30 per share on 27 September 2005, US Airways said.

The company has the option to redeem the notes, in whole or in part, on or after 5 October 2010, if the closing price of the common stock has exceeded 115% of the conversion price for a specified period.

The initial purchaser has been granted an option to purchase up to an additional USD18.75m aggregate principal amount of notes.

The offering is expected to close on 30 September 2005.
----------

Jim

 

[tahitigirl]

So is this a good thing?

 

[TheNewLowFare]

So is this a good thing?

[post="306563"][/post]​

It might be a good thing if they want more money.

 

[JayBrian]

There is nothing wrong with building up the cash balances while you can. Especially if it's raised through equity offerings.