Volaris Announces Pricing of Upsized Offering of ADSs

Rhea-AI Summary

On December 9, 2020, Volaris (NYSE: VLRS) announced the pricing of an upsized primary follow-on equity offering, selling 134 million Ordinary Participation Certificates (CPOs) as American Depositary Shares (ADSs) at $11.25 each. The offering includes a provision for underwriters to purchase an additional 20.1 million CPOs. The proceeds will be deployed for general corporate purposes. Morgan Stanley, Evercore ISI, Santander, Citigroup, and BofA Securities are the underwriters, with closing anticipated on December 11, 2020.

Positive

• Upsized offering of 134 million CPOs indicates strong demand.
• Proceeds intended for general corporate purposes could enhance operational capacity.

Negative

• Potential dilution of shares with public offering could affect existing shareholders.

MEXICO CITY, Dec. 9, 2020 /PRNewswire/ --  Controladora Vuela Compañía de Aviación, S.A.B. de C.V. ("Volaris" or the "Company") (NYSE: VLRS and BMV: VOLAR), an ultra-low-cost airline serving Mexico, the United States and Central America, announced today the pricing of an upsized primary follow-on equity offering in which the Company offered 134,000,000 of its Ordinary Participation Certificates (Certificados de Participación Ordinarios), or CPOs, in the form of American Depositary Shares, or ADSs, at a price to the public of $11.25 per ADS in the United States and other countries outside of Mexico, pursuant to the Company's shelf registration statement filed with the Securities and Exchange Commission (the "SEC"). In connection with the offering, the Company has granted the underwriters an option to purchase up to 20,100,000 additional CPOs in the form of ADSs. Each ADS represents 10 CPOs and each CPO represents a financial interest in one Series A share of common stock of the Company. The Company currently intends to use the net proceeds from the offering for general corporate purposes.

Morgan Stanley, Evercore ISI, Santander, Citigroup and BofA Securities are acting as underwriters in connection with the offering and closing is expected to occur on December 11, 2020.

The offering of these securities is being made only by means of a prospectus and an accompanying prospectus supplement. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov.  Alternatively, the Company, any underwriter or any dealer participating in the offering will arrange to send you the prospectus and the accompanying prospectus supplement if you request it by contacting Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014; Evercore Group L.L.C., Attention: Equity Capital Markets, 55 East 52nd Street, 36th Floor, New York, NY 10055, by phone at (888) 474-0200, or by email at ecm.prospectus@evercore.com; Santander Investment Securities Inc., Attention: Equity Capital Markets, 13th floor 45 East 53rd Street, New York, NY 10022; Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 (Tel: 800-831-9146); or BofA Securities, NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte NC 28255-0001, Attention: Prospectus Department or by emailing dg.prospectus_requests@bofa.com.

This press release shall 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 other 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 other jurisdiction. 

About Volaris:

("Volaris" or the "Company") (NYSE: VLRS and BMV: VOLAR), is an ultra-low-cost carrier (ULCC), with point-to-point operations, serving Mexico, the United States and Central America. Volaris offers low base fares to build its market, providing quality service and extensive customer choice. Since beginning operations in March 2006, Volaris has increased its routes from five to more than 171 and its fleet from four to 85 aircraft. Volaris offers more than 350 daily flight segments on routes that connect 43 cities in Mexico and 25 cities in the United States with one of the youngest fleets in The Americas. Volaris targets passengers who are visiting friends and relatives, cost-conscious business and leisure travelers in Mexico and in selected destinations in the United States and Central America. Volaris has received the ESR Award for Social Corporate Responsibility for eleven consecutive years. For more information, please visit: www.volaris.com.

Investor Relations contact: María Elena Rodríguez & Andrea González/ Investor Relations / ir@volaris.com / +52 55 5261 6444

Media contact: Gabriela Fernández / volaris@gcya.mx / +52 55 5246 0100

 

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SOURCE Volaris

FAQ

What is the recent stock offering from Volaris (VLRS)?

Volaris announced a follow-on equity offering of 134 million Ordinary Participation Certificates priced at $11.25 each.

When is the closing date for Volaris' stock offering?

The closing of the stock offering is expected to occur on December 11, 2020.

Who are the underwriters for the Volaris offering?

Morgan Stanley, Evercore ISI, Santander, Citigroup, and BofA Securities are acting as underwriters.

What will Volaris do with the proceeds from the stock offering?

The proceeds will be used for general corporate purposes.

How many additional CPOs can underwriters purchase in the Volaris offering?

Underwriters have an option to purchase up to 20.1 million additional CPOs.