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Originally Posted by mke9499
(Post 20333644)
During RJET's Q4 earnings call, Bryan Bedford noted the company is held to nondisclosure agreements, but he can confirm discussions with "a number of interested parties." The company expects to have a decision on the path forward in about the next month and currently expects that if a transaction were to occur it, it would be closed by the end of Q2. Bedford also said he was "not speculating on whether or not we will receive any acceptable offers."
"If a transaction were to occur" suggests there is a possibility that a transaction may not occur. He qualifies even that - "he is not speculating on whether or not they will receive any acceptable offers." Since has also previously talked about possibly going straight to IPO, perhaps he indicating a different, but already suggested, path from the "sale" most are expecting - that Frontier may be separated as a spin-off, with RJET shareholders invited to participate - which, given the 2012 profit and the almost doubling of the share price this year, could be no bad thing. From the git-go, BB has said that whatever happens will be in the best interests of the RJET shareholders. |
He really is indicating nothing. BB has to couch what he says particularly when it comes to transactions. "If a transaction were to occur" is standard "forward looking statements" noncommital language that all companies use when discussing transactions. I wouldn't read anymore into it.
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Originally Posted by tvnwz
(Post 20378778)
He really is indicating nothing. BB has to couch what he says particularly when it comes to transactions. "If a transaction were to occur" is standard "forward looking statements" noncommital language that all companies use when discussing transactions. I wouldn't read anymore into it.
I think a transaction will occur, but I think it may be interestingly structured. |
Bryan Bedford (Chairman, President, CEO), Wayne Heller (Executive VP, COO), and Tim Dooley (Sr. VP, CFO) of Republic Airways have taken advantage of stock options to acquire a fair number of shares, lately.
Indicative of rising value + ??? |
Originally Posted by mke9499
(Post 20418265)
Bryan Bedford (Chairman, President, CEO), Wayne Heller (Executive VP, COO), and Tim Dooley (Sr. VP, CFO) of Republic Airways have taken advantage of stock options to acquire a fair number of shares, lately.
Indicative of rising value + ??? On January 2 this year - when this run began - the shares were at $5.68. |
Originally Posted by mke9499
(Post 20418265)
Bryan Bedford (Chairman, President, CEO), Wayne Heller (Executive VP, COO), and Tim Dooley (Sr. VP, CFO) of Republic Airways have taken advantage of stock options to acquire a fair number of shares, lately.
Indicative of rising value + ??? |
Two investment firms are in early stages of discussions to purchase F9.
From Mike Spector and Jack Nicas of the Wall Street Journal: Two investment firms are in discussions with Republic Airways Holdings Inc. to acquire discount-carrier Frontier Airlines in a deal that could be valued at more than $1 billion including debt, said people close to the negotiations. Indigo Partners LLC, a Phoenix-based private-equity firm that specializes in airline investments, and Anchorage Capital Group LLC, a New York investment firm focused on distressed-debt trading and sectors including airlines, are competing to take control of Frontier, the people said. The discussions remain at an early stage and could fall apart, the people said. A handful of possible suitors have expressed interest in Frontier, with Indigo and Anchorage emerging as the most serious potential bidders, they said. Under the contours of a deal currently being discussed, a buyer would pay between $20 million and $50 million to purchase Frontier from Republic and then recapitalize the airline with an additional $100 million to $150 million, the people said. A buyer would also assume hundreds of millions of dollars of liabilities. There is also a scenario under consideration in which Republic would retain a minority stake in Frontier, they said. The details surrounding any deal remain fluid and could change as negotiations progress. Indianapolis-based Republic purchased Frontier out of bankruptcy proceedings in 2009 for $109 million and assumed $1 billion in debt and aircraft-lease obligations. Republic, a publicly traded carrier that flies small aircraft on behalf of large airlines, has said it wanted to try running a brand-name carrier in the hopes it could offset shrinking margins in its core business. But Frontier posted losses of $148 million on a pretax basis during its first two years owned by Republic as high fuel prices squeezed the industry. Republic, which didn't worry about fuel prices in its core business since larger airlines paid those bills, lost $165.6 million the first two full years of owning Frontier, according to securities filings. All the while, Southwest Airlines Co. surpassed Frontier in the share of total departing passengers from Frontier's main hub in Denver, according to airport data. Republic disclosed in April 2012 that it had hired bankers at Barclays Capital to seek buyers for Frontier. Frontier's fortunes have recently improved, partly because of a significant restructuring effort led by Republic Chief Executive Bryan Bedford that included union givebacks, changes in the carrier's fleet and deep cuts to its schedule. Frontier has 6,900 flights scheduled this month, down nearly a third from a year ago, according to Innovata LLC, which tracks airline schedule data. The changes helped Frontier swing to a pretax profit of $24 million in 2012 on revenue of $1.4 billion. Frontier carried 10.7 million passengers last year, with about 40% of its flights beginning in Denver, where it is the No. 3 carrier after United Continental Holdings Inc. and Southwest. Indigo, run by former America West Airlines CEO William A. Franke, bought Spirit Airlines Inc. in 2006. As chairman, he transformed the carrier into a so-called "ultra-low-cost" airline and one of the fastest-growing carriers in the U.S. In airline circles, Indigo is known for its investments in discount carriers across the world, including Tiger Airways Holdings Ltd. in Singapore, Wizz Air Hungary Airlines Ltd. in Hungary, and Volaris in Mexico. Mr. Franke has also teamed up with TPG founder David Bonderman on investments such as Ireland's Ryanair Holdings, a leading discount airline. Mr. Franke hired US Airways Group Inc. LCC CEO Doug Parker as finance chief at America West before it merged with US Airways. Mr. Parker now is in line to run the new American Airlines Group Inc. if a merger between AMR Corp.'s American Airlines and US Airways gets approved by federal antitrust officials. Anchorage, too, has experience in the airline industry, investing in Spirit and other airlines. Anchorage specializes in trading debt of troubled companies and sometimes takes ownership of them through financial restructurings or bankruptcies. The investment firm's co-founder, Kevin Ulrich, is best known for sitting on the board of film studio Metro-Goldwyn-Mayer Inc.'s corporate parent after forgiving large debt holdings for significant ownership of the Hollywood company during a streamlined bankruptcy reorganization. Still, finding buyers for the airline has looked challenging from the beginning. In early 2012, Republic's Mr. Bedford said in an interview with The Wall Street Journal that airlines that would fit well with Frontier, including JetBlue Airways Corp. and Spirit, had shown little interest, and that the chances another airline would buy Frontier were "very, very low." |
Indigo, run by former America West Airlines CEO William A. Franke |
Originally Posted by Tanic
(Post 20565063)
Oh boy, he wants another airline? HP lost an awful lot of customer goodwill and business during those days.
http://www.denverpost.com/breakingne...tential-buyers "In airline circles, Indigo is known for its investments in discount carriers across the world, including Tiger Airways Holdings Ltd. in Singapore, Wizz Air Hungary Airlines Ltd. in Hungary, and Volaris in Mexico. Mr. Franke has also partnered with TPG founder David Bonderman on investments such as Ryanair Holdings PLC, a leading discount airline based in Ireland." It's partner - TPG/David Bonderman - has two seats on the board of Republic and supplied Frontier's CEO, Dave Siegel. |
Frontier has a tentative buyer
http://www.bizjournals.com/denver/ne...ml?ana=RSS_wid
The parent company of Frontier Airlines has entered into an exclusive, nonbinding term sheet to sell the Denver-hubbed airline to an unnamed third party and hopes to complete the transaction by the end of September, its CEO and president said Thursday. I can only assume that the resultant F9 will be virtually indistinguishable from Spirit. Ew. |
Most RAH employees are starting celebrations! SOLD thank god....
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Originally Posted by cwe84
(Post 21163263)
Most RAH employees are starting celebrations! SOLD thank god....
Put together all the pieces and this could be accomplished within a year of the close date. :( |
Originally Posted by DenverBrian
(Post 21162728)
I can only assume that the resultant F9 will be virtually indistinguishable from Spirit. Ew.
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Frontier on the block - RJET wants out
I'll be booking over 150K of award trips tonight!!!
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Originally Posted by khoward
(Post 21163631)
I don't have any sources, but if this comes to pass, then Frontier Airlines days are short in number. The most likely acquirer is Spirit's controlling group and they will be absorbing the F9 planes (Spirit is all Airbus too), some of the crews, none of the Frontier corporate ops or the F9 Denver hub, and fanning everything out as Spirit resources across the US.
Except that Indigo Partners and William Franke are cashing up and getting out of Spirit: http://finance.yahoo.com/news/spirit...203917312.html " Spirit Airlines, Inc. (SAVE) announced today the public offering of 12,070,920 shares of common stock by certain existing stockholders affiliated with Indigo Partners LLC ("Indigo"). Upon completion of the offering, investment funds affiliated with Indigo will no longer own shares of common stock of Spirit Airlines. The company will not receive any proceeds from this offering. Barclays is acting as the sole underwriter for the offering. In connection with the offering, the Company also announced that Messrs. William A. Franke and John R. Wilson have informed the Company that upon completion of the offering, they expect to resign as directors at the next board meeting, presently scheduled for August 7, 2013. " Interesting turn of events. |
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