US Airways To Sell 19M Shares

US Airways To Sell 19M Shares

US Airways Group Inc. (LCC) plans to sell 19 million shares
at $8.50 apiece as the airline moves to raise about $155
million, taking advantage of a recent surge in its stock
price.
Merrill Lynch & Co. (MER) will serve as the book-running
manager for the offering, the proceeds of which are intended
to be used for general corporate purposes.
Underwriters have a 30-day option to purchase up to an
additional 2.85 million shares to cover overallotments.
US Airways has about 92.1 million shares outstanding.
Shares of the carrier, which are down 67% the past year,
have soared more than sixfold the past month after hitting
a low of $1.45 in July. Trading was halted at US Airways’
request a few minutes before the stock sale was disclosed
late Thursday morning to “permit an orderly distribution of
the new shares.” Prior to the halt, the stock traded hands
up 3.8% at $9.46 but was down nearly 1.4% to $8.98 following
the resumption of trading.