Moot Point Now
Reuters
Northwest's Pinnacle Air IPO set at 19.4 mln shrs
Friday November 7, 6:26 pm ET
WASHINGTON, Nov 7 (Reuters) - An initial public offering by Northwest Airlines Corp.'s (NasdaqNM:NWAC - News) regional carrier Pinnacle Airlines Corp. was set at 19.4 million common shares, a regulatory filing on Friday said.
The shares will sell for $15 to $17 each, which could raise $291 million to $329.8 million.
All of the shares are being offered by the Northwest Airlines Pension Plans, meaning Pinnacle won't get any of the proceeds from the IPO.
The shares and price range were disclosed for the first time in a filing with the Securities and Exchange Commission (News - Websites) .
The initial public stock sale is being handled by Morgan Stanley, Citigroup, Credit Suisse First Boston, Deutsche Bank Securities, J.P. Morgan and Blaylock & Partners.
The underwriters have an option to buy 2.5 million shares to cover any over-allotments.
Once the IPO is completed, the pension plans will not own any common shares of Pinnacle, according to the filing.
If the over-allotment option granted to the underwriters is not exercised, Northwest will own 11.4 percent, or 2.5 million shares, but if the over-allotment option is fully exercised, Northwest will not own any common shares.
Northwest will continue to own one share of its Series A preferred stock, the filing said.
Northwest shares dropped 3 cents, or 0.22 percent, to close at $13.47 on Nasdaq.
Pinnacle Airlines, formerly known as Express Airlines I, was acquired by Northwest on April 1, 1997 for about $33 million.
The Memphis, Tennessee-based carrier will have 21.9 million shares outstanding and has applied for a Nasdaq listing under the symbol "PNCL" (Nasdaq
NCL - News). It was not immediately known when the stock will be traded.
So much for this rumor.
