Gulfstream International Airlines’
parent Gulfstream International Group is planning to
launch an initial public offering (IPO) of shares,
and will use some of the proceeds to acquire aircraft.
In a filing with US Securities and Exchange Commission
(SEC), the holding company says it intends to sell 1 million shares of common
stock at $11 to $13 per share. The underwriter has a
30-day option to purchase up to an additional 150,000 shares from the
company at the IPO price less an underwriting discount.
“We estimate the net proceeds from
the sale of the shares of common stock we are offering will be approximately
$10.2 million,” says Gulfstream. “If the
underwriter fully exercises the over-allotment option, the net proceeds will be
approximately $11.8 million.”
The company expects its common
stock will be approved for listing on the American Stock Exchange under the
Gulfstream plans to use roughly
$3.3 million to fully redeem 12% of its subordinated debentures. The remaining
proceeds “will be used to acquire additional aircraft, to finance existing
aircraft, or for general working capital purposes”, says Gulfstream.
The holding company’s Gulfstream International Airlines subsidiary currently operates more
than 200 scheduled flights per day, serving 11 destinations in Florida
and 10 destinations in the Bahamas.
Its fleet consists of 27 Raytheon Beech 1900D turboprops and eight Embraer EMB-120 Brasilias.
The carrier operates under a principal codeshare
and alliance agreement with Continental Airlines, but is also codeshares with Panama’s
Copa Airlines, Northwest Airlines and
Gulfstream’s other subsidiary, Gulfstream Training
training to commercial pilots.