AMEX Index slips, United Airlines announces public offering
The AMEX Airline Index (-0.9%) fell on Wednesday (30-Sep-09) as the Dow slipped 0.3%, and oil prices surged 5.9% to USD70.61.
United Airlines gets on capital raising bandwagon
United Airlines (-0.4%) announced during trading that it plans to offer, subject to market and other conditions, USD175 million aggregate principal amount of convertible senior notes due in 2029 in a concurrent underwritten registered public offering. In connection with this offering, the company intends to grant the underwriters an over-allotment option of an additional USD26.25 million aggregate principal amount of convertible senior notes.
The company also plans to offer 19 million shares of its common stock in an underwritten registered public offering. In connection with this offering, the company intends to grant the underwriters an over-allotment option with respect to an additional 2.85 million shares of its common stock.
United's stock declined 6% following the announcement.
AirTran enters into agreement with principal credit facility lender and largest credit card processor
AirTran (-0.5%) meanwhile announced it has entered into agreements with its principal credit facility lender, and its largest credit card processor, extending and modifying both agreements, to boost its cash balances.
In other LCC news, WestJet (-0.5%) announced it has completed its previously announced capital raising.
North & South America selected airlines daily share price movements (% change): 30-Sep-09