N917ME From United States of America, joined Feb 2005, 726 posts, RR: 1 Posted (5 years 9 months 1 week 3 days 22 hours ago) and read 8305 times:
With most of the drama behind us now, I am curious as to what other think about the future of YX...
I am sure there will be changes... TPG has a proven track record for being in it for the long haul and growing companies. Yes, NWA is involved.. however, they are a minority partner. TPG put up the majority off the cash and will write the checks... so TPG will be the ones calling the shots. NWA primarily invested as a strategic move to keep FL from expanding in MKE. YX has proven many times that MKE belongs to YX and will defend it. Even when YX was knocking on deaths door, they were still able to fend off NWA.
I see the MD 80 replacement program being accellerated, but continued slow steady growth which has proven successful.
N917ME From United States of America, joined Feb 2005, 726 posts, RR: 1 Reply 2, posted (5 years 9 months 1 week 3 days 20 hours ago) and read 8217 times:
TPG appears to be very commited and again they proved that last night with raising the bid. I am sure some type of restructuring may take place. I do feel that TPG is in it for the long haul, and I am sure there will be YX haters that will try to convince the world that this is the beginning of the end of YX., and Joe and Co. will release something stating that YX employees better fear for their jobs.. this deal won;t work because of anti trust issues...etc....
It would be awsome as hell to have the original "Midwest Express" back with the china, wine, etc... unlikely, but hell, I am allowed to dream.
KarlB737 From United States of America, joined Mar 2004, 2927 posts, RR: 9 Reply 4, posted (5 years 9 months 1 week 3 days 19 hours ago) and read 8158 times:
Press Release Source: Midwest Air Group
Midwest Air Group Board Executes Definitive Merger Agreement With TPG Capital
Friday August 17, 12:11 am ET
Agreement Provides for $17 per Share in Cash for Midwest's Shareholders
MILWAUKEE, Aug. 17 /PRNewswire-FirstCall/ -- Midwest Air Group (Amex: MEH - News), parent company of Midwest Airlines, today announced that it has signed a definitive merger agreement to be acquired by an affiliate of TPG Capital, L.P. in a transaction valued at approximately $450 million. The merger agreement was unanimously approved by the Midwest Air Group Board of Directors.
Under the terms of the agreement, each outstanding share of Midwest's common stock will be converted into the right to receive $17.00 per share in cash. On December 12, 2006, the last trading day before the public announcement of AirTran's indication of interest in acquiring Midwest, the per share price of Midwest's common stock was $9.08. Midwest has approximately 26.6 million shares outstanding, including shares subject to options, restricted share awards and outstanding warrants.
"This is a significant milestone for Midwest," said Timothy E. Hoeksema, chairman and chief executive officer. "The agreement preserves the airline's status as Milwaukee's hometown airline and the popular Midwest Airlines brand for Midwest's loyal customers and employees. TPG shares our commitment to quality and truly understands the value of a differentiated product. We're looking forward to a long-term relationship with TPG, and benefiting from their strength and experience."
Richard P. Schifter, partner, TPG Capital, added, "TPG is excited about the opportunity to invest in Midwest Airlines, which has managed to preserve a quality of service to its passengers rarely seen today. We look forward to working with management and its highly motivated workforce in driving growth and creating more value. We hope that our industry experience, together with an expanded alliance with Northwest Airlines, will lead to a bigger and better Midwest."
The transaction is expected to be completed in the fourth quarter of 2007. All financing for the transaction is in the form of equity and has been committed. No debt financing is required. The transaction is subject to approval by Midwest's shareholders, as well as other customary conditions, including anti-trust approvals.
The agreement with TPG came at the conclusion of a process in which TPG and AirTran were each asked to submit a "best and final" offer by noon Central time on August 16, 2007. At that time, TPG submitted its $17.00 per share proposal.
The TPG proposal was weighed against a proposal from AirTran of $16.27 per share in cash and AirTran stock. More specifically,
* AirTran proposed to pay $10.00 in cash plus a fraction of a share of
its stock having a value of $6.27 based upon an average market price
during a specified period leading up to closing ("valuation period"),
so long as (i) AirTran's stock averaged between $9.32 and $11.39 during
such period and (ii) AirTran was able to obtain at least $150 million
of debt financing at an interest cost not exceeding 13.5% per annum.
AirTran's debt commitment letters were subject to a "market out"
* If AirTran's debt financing had not been available on such terms,
AirTran would have had the option of reducing the cash component to as
low as approximately $4.35 per share and issuing a fraction of a share
of its stock having a value of $11.92 based upon an average market
price during the valuation period, so long as AirTran's stock averaged
between $9.32 and $11.39 during such period. In such instances,
depending upon the number of AirTran shares to be issued, the
transaction would have been conditioned upon approval by AirTran's
* If the average stock price during the valuation period were outside the
$9.32 and $11.39 collars, the amount of AirTran shares issued no longer
floated but became fixed. The per share value at closing of the total
consideration could then have been less or more than $16.27 per share.
The Midwest board carefully considered the differences in value, closing conditions and other terms between the TPG and AirTran proposals and unanimously approved the TPG proposal.
Samuel K. Skinner, chairman of the board's special review committee established in connection with the board's exploration of strategic and financial alternatives and former Secretary of the U.S. Department of Transportation, noted that "the board's process was carefully designed to maximize value and the committee received best and final offers from both bidders."
Northwest Airlines Corporation will be a minority passive investor in Midwest Air Partners, LLC, the entity formed to acquire Midwest.
Goldman, Sachs & Co. is acting as financial advisor and Godfrey & Kahn, S.C. and Sidley Austin LLP are acting as legal advisors to Midwest Air Group in connection with the transaction.
Citigroup Global Markets Inc. is acting as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP is acting as legal advisor to TPG in connection with the transaction.
About TPG Capital
TPG Capital is the global buyout group of TPG, a leading private investment firm founded in 1992, with more than $30 billion of assets under management and offices in San Francisco, London, Hong Kong, New York, Minneapolis, Fort Worth, Melbourne, Menlo Park, Moscow, Mumbai, Shanghai, Singapore and Tokyo. TPG Capital has extensive experience with global public and private investments executed through leveraged buyouts, recapitalizations, spinouts, joint ventures and restructurings. TPG Capital's investments span a variety of industries including travel, technology, retail/consumer, media and communications, industrials, financial services and healthcare. Please visit http://www.tpg.com.
About Midwest Airlines
Readers of Travel Leisure named Midwest Airlines "Best Domestic Airline" in the magazine's 2007 World's Best Awards competition. The airline features jet service throughout the United States, including Milwaukee's most daily nonstop flights and best schedule to major destinations. Catering to business travelers and discerning leisure travelers, the airline earned its reputation as "The best care in the air" by providing passengers with impeccable service and onboard amenities at competitive fares. Both Skyway Airlines, Inc. -- a wholly owned subsidiary of Midwest Airlines -- and SkyWest Airlines, Inc. operate as Midwest Connect and offer service to and connections through Midwest Airlines' hubs. Together, the airlines offer service to 53 cities. More information is available at http://www.midwestairlines.com.
Midwest will file a Current Report on Form 8-K with the Securities and Exchange Commission (the "SEC") regarding the merger agreement and attach to the filing a copy of the definitive agreement. All parties desiring details regarding the transaction are urged to review the definitive agreement when it is available on the SEC's Web site at http://www.sec.gov.
In connection with Midwest's solicitation of proxies with respect to the meeting of shareholders to be called with respect to the proposed merger, Midwest will file with the SEC, and will furnish to shareholders of Midwest, a proxy statement. Midwest's shareholders are urged to read the proxy statement when it is finalized and distributed to shareholders because it will contain important information. Shareholders will be able to obtain a free-of-charge copy of the proxy statement (when available) and other relevant documents filed with the SEC from the SEC's Web site at http://www.sec.gov. Shareholders will also be able to obtain a free-of-charge copy of the proxy statement and other relevant documents (when available) by directing a request by mail or telephone to Midwest Air Group, Inc., 6744 South Howell Avenue, Oak Creek, Wisconsin 53154, Attention: Investor Relations, Telephone: 414-570-3954, or from Midwest's Web site, http://www.midwestairlines.com.
Midwest and certain of its directors, executive officers and other members of management and employees may, under the rules of the SEC, be deemed to be "participants" in the solicitation of proxies from shareholders of Midwest in favor of the proposed merger. Information regarding the persons who may be considered "participants" in the solicitation of proxies will be set forth in Midwest's proxy statement when it is filed with the SEC. Information regarding certain of these persons and their beneficial ownership of Midwest common stock as of March 26, 2007 is also set forth in the Schedule 14A filed by Midwest with the SEC on May 16, 2007.
Statements about the expected timing, completion and effects of the proposed merger and all other statements in this release, other than historical facts, constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements and any such forward-looking statements are qualified in their entirety by reference to the following cautionary statements. All forward-looking statements speak only as of the date hereof and are based on current expectations and involve a number of assumptions, risks and uncertainties that could cause the actual results to differ materially from such forward-looking statements. Midwest may not be able to complete the proposed merger on the terms described above or other acceptable terms or at all because of a number of factors, including the failure to obtain shareholder approval or the failure to satisfy the closing conditions. These factors, and other factors that may affect the business or financial results of Midwest are described in the risk factors included in "Item 1A. Risk Factors" in Midwest's "Annual Report on Form 10-K" for the year ended December 31, 2006.
Source: Midwest Air Group
actually MSP has been a good route for YX and with NW's problems these days- they may actually relinquish a few trips to YX so as to use their unreliable assets in other markets....with NW's code on the YX flights of course.
Sxf24 From United States of America, joined Aug 2007, 1225 posts, RR: 0 Reply 9, posted (5 years 9 months 1 week 3 days 17 hours ago) and read 7982 times:
Quoting Davidlc3 (Reply 7): actually MSP has been a good route for YX and with NW's problems these days- they may actually relinquish a few trips to YX so as to use their unreliable assets in other markets....with NW's code on the YX flights of course.
MSP is NW's cash cow and they will do anything to protect market share and pricing power.
Daus From United States of America, joined May 2005, 284 posts, RR: 0 Reply 10, posted (5 years 9 months 1 week 3 days 17 hours ago) and read 7946 times:
A few things:
I can't imagine TPG would get into this game without having a national strategy for Midwest. There is very little upside for them to flip the same company they bought (at what may now be an inflated price) 5 to 7 years down the road because they are now flying to Bozeman, MT and Rochester MN and have more efficient airframes.
TPG has said on a couple occasions that they perceive the market moving towards higher service offerings.
Northwest needs to fit in here somewhere, and I just don't buy they are in it to restrain Midwest. TPG wouldn't allow that, it would harm their investement unless there is a backdoor deal to compensate TPG for gains at NWA. As best as I can tell TPG does not currently hold a significant ownership in NWA.
So hear is my guess.... I know it's crazy but it might work.... Signature service comes to Minneapolis and Detroit, flying to all major, business oriented, NWA destinations.
Daus From United States of America, joined May 2005, 284 posts, RR: 0 Reply 12, posted (5 years 9 months 1 week 3 days 17 hours ago) and read 7884 times:
Quoting N917ME (Reply 11): however I would like the "Old" Midwest Express days back.. china, linen, wine..... (Just dreaming)
Agreed. For it to work, and to properly differentiate from mainline NWA flights you would need to take the service level back up to pre-911 levels. Not sure the lobster will ever make it back, but a decent steak and little red wine?
ERJ170 From United States of America, joined Apr 2004, 6626 posts, RR: 19 Reply 13, posted (5 years 9 months 1 week 3 days 17 hours ago) and read 7881 times:
Hmm.. I see NWA involvement in such a way that NW gets an automatic codeshare focus city at MKE and codeshares on all YX flights out of MKE and probably MCI.. that way they can keep their planes flying where they want.. and still have the opportunity to have the MKE focus city that they disbanded a while back.. keep themselves in the heartland.. I could see perhaps an international flight or two out of MKE on NW metal with a YX codeshare (CUN, NAS, or perhaps even AMS).. but that's about it..
Midwest Express would be great.. perhaps as the Regional carrier.. but leave the main airline as Midwest Airline.
I don't think we will see a great big overhaul of much.. Signature service will probably stay.. Saver service is just normal. Cookies will definitely have to stay. The CRJs will stay. The MD80s, FRJ, and probably the B1900 will probably go by the wayside in my opinion..
Cloudboy From United States of America, joined Jan 2004, 668 posts, RR: 0 Reply 21, posted (5 years 9 months 1 week 3 days 10 hours ago) and read 7459 times:
I don't really see how Northwest even will have much influence over Midwest. They are a minor investor, so they don't have control that way. They will not be on the board, so no management influence. I think that the Northwest issue is a bit overblown. What I think the Northwest deal is about is an option for the future in partnership.
Personally, TPG has already said they see value in a differentiated product. I don't think they are going to push to align Midwest with more traditional airlines. While they say they are still going ahead with the cabin reconfiguration, quite frankly I have my doubts about that. I think it will hurt them in attracting the average business flyer. That ultimately IS their product differentiation, and I think if they give it up someone will take their place.
"Six becoming three doesn't create more Americans that want to fly." -Adam Pilarski
Sacamojus From United States of America, joined Dec 2006, 228 posts, RR: 1 Reply 23, posted (5 years 9 months 1 week 3 days 9 hours ago) and read 7137 times:
Quoting Cloudboy (Reply 21): I don't really see how Northwest even will have much influence over Midwest. They are a minor investor, so they don't have control that way. They will not be on the board, so no management influence. I think that the Northwest issue is a bit overblown. What I think the Northwest deal is about is an option for the future in partnership.
NW might take a passive role on this, but they still are a large investor and could threaten to pull their share if they don't like what they see. I don't think the NW deal was about a partnership as partnership could have been formed with less money. I don't really see why NW buy a portion of an airline with no plans for control unless they want to use the "dividends" as a source of cash for growing their own airline. Who Knows?
Cloudboy From United States of America, joined Jan 2004, 668 posts, RR: 0 Reply 24, posted (5 years 9 months 1 week 3 days 9 hours ago) and read 6942 times:
Do we honestly know that NW's investment is large? That almost seems like an assumption everyone is making. The TPG guy even alluded to the fact that he was unsure of how big their portion was (which would not be true if it was significant), AND he was not sure it would be big enough to even warrant investigation. Which also indicated it may not be much. I think it may be more of an out for TPG in case it goes bad, and a kind of insurance policy for Northwest in case TPG wants to sell so it doesn't get scooped up by someone else. The fact that discussions about it have only been in talks for a few weeks seems kind of like it's not a major undertaking for Northwest.
"Six becoming three doesn't create more Americans that want to fly." -Adam Pilarski
25 Davidlc3: I would agree with your line of thinking but if they are to have no say so, no control, why be part of the deal at all? TPG is quite capable of raisi
26 PVDCMHOZ: My theory on the future of YX: In about 3-5 years time, YX will be nothing more then either: A NW Airlink partner for the "Red Tail." ala Midway II be
27 Jmc1975: Since they are now in bed with Northwest, I can see all the 717s moving over to the NW operation, while giving all the DC9s back to YX and eventually
28 N822ME: Northwest isn't even a big enough part of this to warrant a seat on the new board. I think you're just talking out of your nether-regions here. And w
29 N822ME: You forgot another side to this: The revenue to YX via this codeshare isn't anything to balk at..... selling YX tickets through to intl destinations
30 Paladin87: ADVERTISEMENT Yahoo!My Yahoo!Mail Make Y! your home pageYahoo! SearchSearch:Welcome, rcbergjr [Sign Out, My Account]Finance Home -Help Home InvestingM
31 Cloudboy: Simple - it's not just raising the capital, it's putting capital at risk. NW's investment simply reduces the amount of capital TPG has to put up fron