Virgin America files for IPO
Nov 3, 2014, 3:15 pm
#16
Join Date: Dec 2004
Programs: Hyatt Globalist, Marriott Titanium, UA Silver, Hilton Gold, Hertz Pres Circle
Posts: 1,509
I will pass..
This is great customer-focused company that I like, but perhaps a bad investment...
I am trying to get my head around the $250 mil they borrowed from Cyrus Capital and Virgin Group at 17% ( a Comenity credit card might have been cheaper), and secured by virtually all assets of the company. They borrowed this money in 2011 and 2013. I can't fathom why the rate had to be that high.
Anybody who agreed to pay 17% on a secured loan a year ago has some issues. they are only paying back a portion of it with the proceeds of this IPO. Paying it all off (or refinancing it at half the rate) is in the best interest of the company.
I also wouldn't mind hearing more about the $5 million in stock Cyrus is giving non-officer VX employees, which they are promptly selling - See info on selling shareholders . Though they likely deserve it, why are the employees getting this gift? why are they selling?
There appear to be a ton of warrants and options at prices between $1.50 -$10.00..Nice payday...This of course is not uncommon today, and does not make it a bad stock
Executive compensation looks pretty reasonable.
This is great customer-focused company that I like, but perhaps a bad investment...
I am trying to get my head around the $250 mil they borrowed from Cyrus Capital and Virgin Group at 17% ( a Comenity credit card might have been cheaper), and secured by virtually all assets of the company. They borrowed this money in 2011 and 2013. I can't fathom why the rate had to be that high.
Anybody who agreed to pay 17% on a secured loan a year ago has some issues. they are only paying back a portion of it with the proceeds of this IPO. Paying it all off (or refinancing it at half the rate) is in the best interest of the company.
I also wouldn't mind hearing more about the $5 million in stock Cyrus is giving non-officer VX employees, which they are promptly selling - See info on selling shareholders . Though they likely deserve it, why are the employees getting this gift? why are they selling?
There appear to be a ton of warrants and options at prices between $1.50 -$10.00..Nice payday...This of course is not uncommon today, and does not make it a bad stock
Executive compensation looks pretty reasonable.
Nov 3, 2014, 3:27 pm
#17
Join Date: Oct 2010
Programs: SPG Gold, Hyatt GP Platinum
Posts: 468
Nov 5, 2014, 11:14 pm
#18
Join Date: Oct 2000
Location: Los Angeles
Posts: 336
Nov 12, 2014, 5:07 pm
#21
Join Date: Aug 2012
Location: LA
Programs: VX Silver
Posts: 78
If there's a hike in price (which is very posible) you can't simply sell at that moment. You have to put in a sell request, LOYAL3 aggregates all the sale requests and does a batch sell at the end of the day (at whatever the market price is at the time). An IPO will likely be very volatile so jumping off the first wave using this platform might not be the way to go if you use LOYAL3.
I think I'm going to withdraw my request and just look tomorrow morning and see how if goes from my online broker.
Last edited by Irwin Alvarado; Nov 12, 2014 at 5:08 pm Reason: grammar
Nov 14, 2014, 9:59 am
#22
Join Date: Jun 2007
Location: YVR SFO
Programs: UA G
Posts: 4,866
Well, I thought about doing this so I reserved $2500 but now that I'm reading how LOYAL3 works I'm getting cold feet.
If there's a hike in price (which is very posible) you can't simply sell at that moment. You have to put in a sell request, LOYAL3 aggregates all the sale requests and does a batch sell at the end of the day (at whatever the market price is at the time). An IPO will likely be very volatile so jumping off the first wave using this platform might not be the way to go if you use LOYAL3.
I think I'm going to withdraw my request and just look tomorrow morning and see how if goes from my online broker.
If there's a hike in price (which is very posible) you can't simply sell at that moment. You have to put in a sell request, LOYAL3 aggregates all the sale requests and does a batch sell at the end of the day (at whatever the market price is at the time). An IPO will likely be very volatile so jumping off the first wave using this platform might not be the way to go if you use LOYAL3.
I think I'm going to withdraw my request and just look tomorrow morning and see how if goes from my online broker.
Nov 16, 2014, 6:32 pm
#23
Join Date: Aug 2012
Location: LA
Programs: VX Silver
Posts: 78
I was not able to change it but I did sell at eod for 30% profit. I'll move some of those shares to my online broker. Nice from vx to let us get in in the IPO with small amounts.