Not good news for the legacy majors. This is an incredible amount of money for one fund to put into a small airline like Spirit. They're going from bottom feeder to JetBlue wannabe over the next few years. They won't be roadkill, not for a while.
If other funds are willing to put similar amounts of money to work, there are going to be some king-size startups out there.
Spirit Airlines Obtains $125M for Growth and
New Aircraft; Oaktree Capital Management leads Private Equity
Investment
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Feb. 23, 2004--Spirit
Airlines announced today that it has received a $125 million equity
investment from a group of new investors led by Oaktree Capital
Management, LLC. Spirit is the 14th largest airline and the largest
privately held airline in the U.S. The investment will be used
primarily to finance the acquisition of new aircraft and to position
Spirit for its continued growth as a leading value and service
oriented low cost air carrier. Merrill Lynch & Co. acted as Spirit's
exclusive financial advisor and placement agent on this transaction.
"We now have the financial support to elevate our industry-leading
service by providing our customers with new aircraft, more time-saving
technology, increased frequency and service to new destinations.
Oaktree shares our vision of low fares and outstanding customer
service and is our ideal partner for this important stage in our
growth," said Jacob Schorr, president and chief executive officer of
Spirit.
In the past five years, Spirit doubled its revenues to $450
million in 2003. During this period of extraordinary growth, Spirit
made significant investments in its systems, technology, product and
brand, all focused on improving customer service and satisfaction. In
addition, Spirit developed state-of-the- art, proprietary reservation
and departure control systems and initiated a new class of service,
Spirit Plus. Spirit Plus offers business class leather seating with
complimentary beverages and a snack. During this time, Spirit also
successfully introduced a new, easy to use website that currently
accounts for approximately 60% of total bookings.
"With this investment, Spirit is now a well-financed low cost
carrier with the ability to offer outstanding service and good value.
Spirit has a strong management team, a strategic low cost business
model and focus and the capitalization to be an industry leader. We
are excited to participate in the next stage of Spirit's development
and growth," said Ronald N. Beck, managing director of Oaktree Capital
Management.
Spirit is currently in discussions with aircraft manufacturers to
acquire a substantial number of new narrowbody aircraft to both
replace and expand its existing fleet. The company also expects to
continue to invest in new technologies, including in-flight
entertainment and facilities to provide value to its customers. The
company will introduce e-service kiosks beginning in March.
Quick Facts About Spirit Airlines
-- Headquartered in Fort Lauderdale, Fla.
-- Founded in 1990 in Eastpointe, Michigan
-- Spirit Airlines is the largest privately-held airline in the
U.S.
-- Ranks as the 14th largest airline in the US
-- 115 flights daily to 16 cities
-- 2,700 employees nationwide
-- Fleet of 32 MD-80 aircraft
-- Spirit's website is www.spiritair.com.
About Oaktree Capital Management
Oaktree Capital Management, LLC is a Los Angeles-based private
investment firm that manages in excess of $25 billion in select niche
investment markets for institutions and wealthy individuals. The
Principal Opportunities group of Oaktree manages funds with over $2.5
billion in committed capital, and sponsors management buyouts and
other private equity investments. The Fund has a history of acquiring
control of attractive companies, and in partnership with management,
providing the resources necessary to develop the business and create
long-term value. The firm's website is www.oaktreecap.com.
--30--GM/sf*
CONTACT: Spirit Airlines
Lynne Koreman, 954-447-7856
[email protected]
or
Bennett & Company
Laura Bennett, 407-478-4040
[email protected]
SOURCE: Spirit Airlines
Customize your Business Wire news & multimedia to match your needs.
Get breaking news from companies and organizations worldwide.
Logon for FREE today at www.BusinessWire.com.
(c) 2004 Business Wire
If other funds are willing to put similar amounts of money to work, there are going to be some king-size startups out there.
Spirit Airlines Obtains $125M for Growth and
New Aircraft; Oaktree Capital Management leads Private Equity
Investment
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Feb. 23, 2004--Spirit
Airlines announced today that it has received a $125 million equity
investment from a group of new investors led by Oaktree Capital
Management, LLC. Spirit is the 14th largest airline and the largest
privately held airline in the U.S. The investment will be used
primarily to finance the acquisition of new aircraft and to position
Spirit for its continued growth as a leading value and service
oriented low cost air carrier. Merrill Lynch & Co. acted as Spirit's
exclusive financial advisor and placement agent on this transaction.
"We now have the financial support to elevate our industry-leading
service by providing our customers with new aircraft, more time-saving
technology, increased frequency and service to new destinations.
Oaktree shares our vision of low fares and outstanding customer
service and is our ideal partner for this important stage in our
growth," said Jacob Schorr, president and chief executive officer of
Spirit.
In the past five years, Spirit doubled its revenues to $450
million in 2003. During this period of extraordinary growth, Spirit
made significant investments in its systems, technology, product and
brand, all focused on improving customer service and satisfaction. In
addition, Spirit developed state-of-the- art, proprietary reservation
and departure control systems and initiated a new class of service,
Spirit Plus. Spirit Plus offers business class leather seating with
complimentary beverages and a snack. During this time, Spirit also
successfully introduced a new, easy to use website that currently
accounts for approximately 60% of total bookings.
"With this investment, Spirit is now a well-financed low cost
carrier with the ability to offer outstanding service and good value.
Spirit has a strong management team, a strategic low cost business
model and focus and the capitalization to be an industry leader. We
are excited to participate in the next stage of Spirit's development
and growth," said Ronald N. Beck, managing director of Oaktree Capital
Management.
Spirit is currently in discussions with aircraft manufacturers to
acquire a substantial number of new narrowbody aircraft to both
replace and expand its existing fleet. The company also expects to
continue to invest in new technologies, including in-flight
entertainment and facilities to provide value to its customers. The
company will introduce e-service kiosks beginning in March.
Quick Facts About Spirit Airlines
-- Headquartered in Fort Lauderdale, Fla.
-- Founded in 1990 in Eastpointe, Michigan
-- Spirit Airlines is the largest privately-held airline in the
U.S.
-- Ranks as the 14th largest airline in the US
-- 115 flights daily to 16 cities
-- 2,700 employees nationwide
-- Fleet of 32 MD-80 aircraft
-- Spirit's website is www.spiritair.com.
About Oaktree Capital Management
Oaktree Capital Management, LLC is a Los Angeles-based private
investment firm that manages in excess of $25 billion in select niche
investment markets for institutions and wealthy individuals. The
Principal Opportunities group of Oaktree manages funds with over $2.5
billion in committed capital, and sponsors management buyouts and
other private equity investments. The Fund has a history of acquiring
control of attractive companies, and in partnership with management,
providing the resources necessary to develop the business and create
long-term value. The firm's website is www.oaktreecap.com.
--30--GM/sf*
CONTACT: Spirit Airlines
Lynne Koreman, 954-447-7856
[email protected]
or
Bennett & Company
Laura Bennett, 407-478-4040
[email protected]
SOURCE: Spirit Airlines
Customize your Business Wire news & multimedia to match your needs.
Get breaking news from companies and organizations worldwide.
Logon for FREE today at www.BusinessWire.com.
(c) 2004 Business Wire
