US Airways $$$

BeCareful!

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I know it's terribly unpopular to be at all upbeat about US Airways on this board, but I thought the news was interesting:


Airline options net $113 mil Results delight US Airways

Russ Wiles
The Arizona Republic
Oct. 22, 2005 12:00 AM [FONT=arial,helvetica,sans-serif]Institutional investors have exercised all remaining options to purchase additional shares of US Airways Group common stock, infusing the airline with additional cash and signaling a vote of confidence from Wall Street.

The Tempe-based successor to America West Holdings and US Airways had given several large institutions the right to buy shares at $15 apiece. US Airways stock closed Friday at $21.96, up 94 cents for the day and nearly $3 above its initial post-merger share price.

The option exercises are a sign of "the market's confidence in the new US Airways," said Doug Parker, the firm's chairman, president and chief executive officer, in a release. Participants include Par Investment Partners LP, Peninsula Investment Partners LP, a group headed by Wellington Management Co. LLP and Tudor Proprietary Trading LLC. They exercised options for 5 million shares on Sept. 28, resulting in $75 million in proceeds. The remaining options for 2.5 million shares generated $38 million.

Former America West shareholders now own 20 percent of the company. Wellington and Par have the next largest stakes, 14 percent each.

When combined with other merger-related equity, US Airways has sold $867 million of stock, which it calls the highest amount ever raised by a U.S. airline. Following the merger, the airline spent $116 million repurchasing warrants from the Air Transportation Stabilization Board and $125 million to retire some debt. It now has $2.5 billion in cash on hand.

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