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US/HP Obtains Additional $65 Million Equity  
User currently offlineA330323X From United States of America, joined Oct 2003, 3039 posts, RR: 44
Posted (9 years 2 months 3 weeks 5 days 12 hours ago) and read 1927 times:

TUDOR GROUP COMMITS $65 MILLION IN NEW EQUITY FUNDING TO US AIRWAYS-AMERICA WEST UPON COMPLETION OF MERGER

ARLINGTON, Va., July 7, 2005 -- America West Group Holdings (NYSE: AWA) and US Airways Group, Inc. (OTC: UAIRQ) announced today that Tudor Investment Corp., a leading asset management firm, has made a $65 million commitment to provide equity funding for US Airways’ Plan of Reorganization (POR) in exchange for approximately 3.9 million shares of new common stock at a price of $16.50 per share. Funding will occur along with other equity investments upon completion of the merger.

"The inclusion of Tudor as a new equity partner is a clear indication that investors continue to find great potential in our proposed merger with America West Airlines," said Bruce R. Lakefield, US Airways president and chief executive officer. "We are making tremendous progress in completing a merger that will provide the combined airline financial stability in this highly competitive marketplace."

The Tudor Group, which consists of Tudor Investment Corporation and its affiliates, is involved in active trading, investing, and research in the global equity, debt, currency, and commodity markets. Founded in 1980 by Paul Tudor Jones II, the firm currently manages over $11 billion. The firm's investment capabilities are broad and diverse, including global macro trading, fundamental equity investing in the United States and Europe, emerging markets, venture capital, commodities, event driven strategies and technical trading systems.

The other equity partners funding the US Airways POR and merger with America West are ACE Aviation Holdings Inc., ($75 million commitment) a Canadian holding company that owns Air Canada, Canada’s largest airline with over $7.5 billion in annual revenues; PAR Investment Partners, L.P., ($100 million commitment) a Boston-based investment firm; Peninsula Investment Partners, L.P., ($50 million commitment) a Virginia-based investment firm; Eastshore Holdings LLC, ($125 million commitment and agreement to provide regional airline services), which is owned by Air Wisconsin Airlines Corp., and its shareholders; and Wellington Management Company, a Boston-based investment management firm ($150 million commitment). The rights offering could provide an additional $150 million of equity financing.

As announced, the merger will be funded by $565 million in new equity investment and participation by suppliers and business partners that will provide the company with approximately $1.5 billion in liquidity. Terms of the Tudor agreement have been filed with the U.S. Bankruptcy Court for the eastern district of Virginia, where the US Airways case is being heard.

The US Airways and America West merger, which is expected to close in the early fall, will create the first full-service low-cost nationwide airline, with a consumer-friendly pricing structure offering a network of low-fare service to over 200 cities across the United States, Canada, Mexico, Latin America, the Caribbean and Europe, and amenities that include an extensive frequent flyer program, airport clubs, assigned seating and First Class cabin service. The airline will operate under the US Airways brand and will be headquartered in Tempe, Ariz.

The U.S. Department of Justice has completed its review of the proposed merger of the two airlines without issuing a formal request for additional information (commonly referred to as a "second request"). Since the 30-day period for alternative offers on the proposed merger ended without any competing offers having been submitted, and since there are no qualified competing plan proposals, US Airways will proceed to seek confirmation of the POR implementing the merger agreement and investment agreements.


I'm the expert on here on two things, neither of which I care about much anymore.
7 replies: All unread, jump to last
 
User currently online727LOVER From United States of America, joined Oct 2001, 6448 posts, RR: 20
Reply 1, posted (9 years 2 months 3 weeks 5 days 12 hours ago) and read 1905 times:

I've lost track.

What's the TOTAL equity commitment stand now?



Listen Betty, don't start up with your 'White Zone' s*** again.
User currently offlineA330323X From United States of America, joined Oct 2003, 3039 posts, RR: 44
Reply 2, posted (9 years 2 months 3 weeks 5 days 11 hours ago) and read 1885 times:

I've lost track.

What's the TOTAL equity commitment stand now?


Did you try reading the press release?  Wink

The other equity partners funding the US Airways POR and merger with America West are ACE Aviation Holdings Inc., ($75 million commitment) a Canadian holding company that owns Air Canada, Canada’s largest airline with over $7.5 billion in annual revenues; PAR Investment Partners, L.P., ($100 million commitment) a Boston-based investment firm; Peninsula Investment Partners, L.P., ($50 million commitment) a Virginia-based investment firm; Eastshore Holdings LLC, ($125 million commitment and agreement to provide regional airline services), which is owned by Air Wisconsin Airlines Corp., and its shareholders; and Wellington Management Company, a Boston-based investment management firm ($150 million commitment). The rights offering could provide an additional $150 million of equity financing.

As announced, the merger will be funded by $565 million in new equity investment



I'm the expert on here on two things, neither of which I care about much anymore.
User currently offlineRichardnhsv From United States of America, joined Apr 2005, 473 posts, RR: 2
Reply 3, posted (9 years 2 months 3 weeks 5 days 11 hours ago) and read 1826 times:

Just a few months ago, all the naysayers were dismissing US Airways and forecasting its demise. Now, they've got money coming in from all over the place. Granted... they're not out of the woods yet, but does anyone have a guess as to why the sudden shift of interest in US Airways and its survival?


"If you've ever had a filet this good, welcome back." - Ruth Fertel
User currently offlineA330323X From United States of America, joined Oct 2003, 3039 posts, RR: 44
Reply 4, posted (9 years 2 months 3 weeks 5 days 11 hours ago) and read 1803 times:

Just a few months ago, all the naysayers were dismissing US Airways and forecasting its demise. Now, they've got money coming in from all over the place. Granted... they're not out of the woods yet, but does anyone have a guess as to why the sudden shift of interest in US Airways and its survival?

Maybe because the naysayers on a.net aren't the ones with the money.  Silly



I'm the expert on here on two things, neither of which I care about much anymore.
User currently offlinePlaneSmart From New Zealand, joined Dec 2004, 947 posts, RR: 0
Reply 5, posted (9 years 2 months 3 weeks 5 days 8 hours ago) and read 1720 times:

Quoting Richardnhsv (Reply 3):
Just a few months ago, all the naysayers were dismissing US Airways and forecasting its demise. Now, they've got money coming in from all over the place. Granted... they're not out of the woods yet, but does anyone have a guess as to why the sudden shift of interest in US Airways and its survival?



Quoting A330323X (Reply 4):
Maybe because the naysayers on a.net aren't the ones with the money.

And thankfully that is the case. If it were not, we would still be flying with PanAm, Eastern and TWA, there would be no Emirates, Frontier, Easy, Virgin and Ryanair, we would be paying more for less, and Airbus wouldn't exist either.


User currently offlineHAL From United States of America, joined Jan 2002, 2561 posts, RR: 53
Reply 6, posted (9 years 2 months 3 weeks 5 days ago) and read 1569 times:

Quoting Richardnhsv (Reply 3):
but does anyone have a guess as to why the sudden shift of interest in US Airways and its survival?

Quite possibly because the surviving airline will be USAirways in name only. Headquarters will remain in Tempe (America West HQ now), Doug Parker will be CEO (America West CEO now), USAirways stockholders will get something like 13% of the new company's stock while AWA stockholders will get 40%+. Over the next few months the two airlines are removing over 60 aircraft from their combined fleets - and all but a couple are coming from the USAirways side. Most of the old USAirways ways of doing business will be gone, which means it is more of an acquisition by America West than a merger. Parker seems to be removing the 'fat' from the USAirways system that has lost them all that money over the past few years, and bringing it to the level of America West, which has either made a small profit or broke even during these hard times. The press with their positive commentaries, and the financial world with millions in financing has backed up Parker's plan.

HAL



One smooth landing is skill. Two in a row is luck. Three in a row and someone is lying.
User currently offlineA330323X From United States of America, joined Oct 2003, 3039 posts, RR: 44
Reply 7, posted (9 years 2 months 3 weeks 4 days 17 hours ago) and read 1492 times:

Quoting HAL (Reply 6):
USAirways stockholders will get something like 13% of the new company's stock while AWA stockholders will get 40%+.

US Airways *creditors* were originally to get 14% of the stock. US Airways stockholders will receive nothing. America West stockholders were originally to get 45% of the stock.

With the new equity investments by Wellington and now Tudor, those percentages have shrunk. I now believe US Airways creditors will have about 11% of the stock, and HP stockholders wil have about 34% of the stock.



I'm the expert on here on two things, neither of which I care about much anymore.
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