Sun Country Airlines Holdings, Inc. Announces Pricing of Upsized Secondary Public Offering of Common Stock

Rhea-AI Summary

Sun Country Airlines Holdings, Inc. (NASDAQ: SNCY) announced a secondary public offering of 7,250,000 shares, priced at $34.50 each, with a closing date expected on May 24, 2021. The shares are being sold by an affiliate of Apollo Global Management, and the underwriters have a 30-day option to purchase an additional 1,087,500 shares. Notably, Sun Country will not receive any proceeds from this offering.

Barclays, Morgan Stanley, and Deutsche Bank Securities are joint lead bookrunners for the offering.

Positive

• The offering allows Apollo Global Management to restructure their investment in Sun Country Airlines.
• Potential for increased liquidity in the stock market.

Negative

• Sun Country Airlines will not benefit from the proceeds of the offering, which may limit its ability to fund growth or operational needs.
• The secondary public offering may dilute existing shareholders' equity.

MINNEAPOLIS, May 19, 2021 (GLOBE NEWSWIRE) -- Sun Country Airlines Holdings, Inc. (NASDAQ: SNCY) (“Sun Country Airlines”) today announced the pricing of an upsized secondary public offering of 7,250,000 shares of its common stock by an affiliate of certain investment funds managed by affiliates of Apollo Global Management, Inc. (the “Selling Stockholder”) at a price to the public of $34.50 per share. The offering is expected to close on May 24, 2021, subject to satisfaction of customary conditions.

The underwriters will have a 30-day option to purchase up to an additional 1,087,500 shares of common stock from the Selling Stockholder. Sun Country Airlines is not selling any shares and will not receive any proceeds from the offering.

Barclays, Morgan Stanley and Deutsche Bank Securities are acting as joint lead bookrunners for the offering and Goldman Sachs & Co. LLC and Nomura are acting as joint bookrunners for the offering. Apollo Global Securities, AmeriVet Securities, Siebert Williams Shank and Tribal Markets, LLC are acting as co-managers for the offering.

The offering will be made only by means of a prospectus. A copy of the preliminary prospectus relating to this offering, when available, may be obtained from Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by telephone at 888-603-5847, or by email at Barclaysprospectus@broadridge.com or Morgan Stanley & Co. LLC, Attn: Prospectus Department, 180 Varick, 2nd Floor, New York, New York 10014.

A registration statement on Form S-1 relating to these securities has been filed with the Securities and Exchange Commission and has become effective. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor will there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Sun Country Airlines

Sun Country Airlines is a new breed of hybrid low-cost air carrier that dynamically deploys shared resources across our synergistic scheduled service, charter and cargo businesses. Based in Minnesota, we focus on serving leisure and visiting friends and relatives passengers and charter customers and providing cargo CMI services, with flights throughout the United States and to destinations in Mexico, Central America and the Caribbean.

Forward-Looking Statements

Sun Country Airlines has made statements in this press release and other reports, filings, and other public written and verbal announcements that are forward-looking and therefore subject to risks and uncertainties. All statements, other than statements of historical fact, included in this document are, or could be, “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and are made in reliance on the safe harbor protections provided thereunder. These forward-looking statements relate to, among other things, our strategy, outlook and growth prospects, our operational and financial targets and dividend policy, general economic trends and trends in the industry and markets, the competitive environment in which we operate and other matters. Any forward-looking statement made in this press release speaks only as of the date on which it is made. Sun Country Airlines undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. Forward-looking statements can be identified by various words such as “expects,” “intends,” “will,” “anticipates,” “believes,” “confident,” “continue,” “propose,” “seeks,” “could,” “may,” “should,” “estimates,” “forecasts,” “might,” “goals,” “objectives,” “targets,” “planned,” “projects,” and similar expressions. These forward-looking statements are based on management’s current beliefs and assumptions and on information currently available to management. Sun Country Airlines cautions that these statements are subject to risks and uncertainties, many of which are outside of Sun Country Airlines’ control, and could cause future events or results to be materially different from those stated or implied in this press release, including among others, risk factors that are described in Sun Country Airlines’ Registration Statement on Form S-1 filed in connection with the proposed offering, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained therein and other filings with the Securities and Exchange Commission.

Contacts

Investor Relations
Chris Allen
651-681-4810
IR@suncountry.com

Peter Mintzberg, Head of Investor Relations
Apollo Global Management, Inc.
(212) 822-0528
APOInvestorRelations@apollo.com

Media
Jessica Wheeler
651-900-8400
mediarelations@suncountry.com

Joanna Rose, Global Head of Corporate Communications
Apollo Global Management, Inc.
(212) 822-0491
Communications@apollo.com

FAQ

What is the size of the secondary public offering by Sun Country Airlines (SNCY)?

The secondary public offering consists of 7,250,000 shares priced at $34.50 each.

When is the expected closing date for Sun Country Airlines' secondary offering?

The offering is expected to close on May 24, 2021.

Who is selling shares in the SNCY offering?

The shares are being sold by an affiliate of Apollo Global Management.

Will Sun Country Airlines receive any proceeds from the stock offering?

No, Sun Country Airlines will not receive any proceeds from this offering.

Is there an option for underwriters in the SNCY offering?

Yes, the underwriters have a 30-day option to purchase an additional 1,087,500 shares.