Apollo Global Management, the chief investor that helped take Sun Country Airlines public two months ago, is selling part of its stake in the carrier, the Minneapolis Star-Tribune reported.
Minneapolis is the headquarters for Sun Country.
Apollo, a private equity firm, is looking to lower its stake in the airline from 72 percent to 60 percent.
The Star-Tribune reported that in a filing with securities regulators late Monday, Sun Country said Apollo Global Management, which has owned the airline since 2018, is planning a secondary offering that would leave it with 61.1 percent ownership.
A spokeswoman for the airline deferred comment to Apollo, calling it "their news." A spokesman for Apollo declined to comment.
Rather than be reinvested in the airline - like the funds raised during the company's initial public offering in March - the proceeds from the sale will go directly in the coffers of Apollo's investment funds. The Star-Tribune also noted that the offering includes an optional sale for Apollo and certain underwriters that could further reduce Apollo's stake to 59.5 percent.
But that's not necessarily a bad thing.
The offering would place up to 6.9 million more of Sun Country's 57.1 million shares with the public. Based on Monday's closing stock price of $39.74, that would yield $274 million to Apollo before commissions and fees.
Sun Country added 16 new routes in late January, about two weeks before the Initial Public Offering.
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
