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Did Mesa get the votes?

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There has been absolutely no activity after hours and the price remains at $0.28 per share. Mesa's Book Value per share is $5.27 including $1.75 in cash as of the most recent quarter. They are bleeding heavily.

Additional shares, especially 900 million, should dilute the book value significantly since there are fewer than 28 million shares held now. The book value would be just under $0.16 per share.
 
This gives them leverage against the bond holders to force them to negotiate or get worthless stock. Even if the stock is issued they can fix the share price problem with a reverse split.
 
so...

This gives them leverage against the bond holders to force them to negotiate or get worthless stock. Even if the stock is issued they can fix the share price problem with a reverse split.


So, basically, based on what you're saying, is Mesa home free again? No more turbulent times on the foreseeable horizon?
 
So, basically, based on what you're saying, is Mesa home free again? No more turbulent times on the foreseeable horizon?

Home free with at least 4 more years of the worst pilot contract by far in the industry. Great job Mesa pilots!

Seeing is that nobody has covered it yet.....MESA SUCKS!!!
 
So does this mean MESA is going to pay the bondholders with these additional shares or the public is supposed to buy the shares and MESA will pay the debt with cash?

I'm having a hard time believing that they can sell these additional shares, but I could see a bondholder accepting the shares instead of cash i.e. something is better than nothing.

Can someone explain what these additional share mean and how it helps MESA's financial position.

Thanks.









eP.
 
It's comforting to know that if we go to nuclear war with Iran or China Mesa will still be around to fly the cockroaches where ever they want to go.
 
Ok. So 30 minutes later, I've found my answer:

MESA is authorized to pay the bondholders with these newly issued shares. Based on MESA's SEC filing on Nov. 24th the need for 900M shares would happen if the stock fell to $.10/share.

The below table illustrates the effect of the market price for the Company's Common Stock, and the resulting amount of Common Stock that the Company must issue, if all Forbearing Holders and the holders of the 2024 Notes require the Company to repurchase all of their Senior Notes, and if the Company elects to satisfy its Note Repurchase Obligations solely by issuing shares of Common Stock

Market Price

$0.25

Maximum Note Repurchase Obligation

$94,500,000

Number of Shares of Common Stock that the Company Must Issue

378,000,000

The Company wishes to retain the flexibility to use all cash, all stock or a combination thereof to satisfy its Note Repurchase Obligations in the event that the Forbearing Holders and the holders of 2024 Notes exercise their Forbearing Put Rights and 2009 Put
Roughly as it is now they'll need to issue 378M shares (little less) to pay the bondholders.

Sucks for them!







eP.
 
The problem is that you can't just print money like this. Issuing more shares just dilutes the stock price while at the same time reallocates who owns that equity. So what JO is essentially doing is stealing money from his shareholders to pay off the company debt. Just like the Mesa pilots wouldn't stand up to JO neither will the shareholders.

JO will walk out of this mess both a hero and a king in the buisness world. Meanwhile everyone who makes the company what it is gets screwed by their own cowardly refusal to stand up for themselves.
 
Here's the Press Release:

NEW YORK, Jan 7 (Reuters) - Struggling U.S. airline Mesa Air Group Inc (MESA.O) said on Wednesday its shareholders approved a plan to increase the number of company shares by 1,100 percent and issue new stock.

The move would allow the regional carrier to buy back its bonds from investors if necessary.
The airline, which provides regional service for Delta Air Lines (DAL.N) and other carriers, has been looking to shore up its finances for months as it tries to ride out volatile fuel prices and a dip in travel demand.

Its shares have fallen 93 percent in the last year to close at 28 cents on the Nasdaq.
What is 28 cents, diluted by (gulp) 1,100 percent?
 

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