Sun Country completes share repurchase in secondary offering

Sun Country Airlines Holdings , Inc. (NASDAQ:SNCY), a scheduled air transportation service provider with a market capitalization of $904 million, has completed a secondary public offering and concurrent share repurchase, the company disclosed in a recent SEC filing. The airline’s stock has shown remarkable momentum, gaining over 74% in the past six months. According to InvestingPro analysis, Sun Country currently maintains a GOOD financial health score, despite some liquidity challenges. On Monday, Sun Country and SCA Horus Holdings, LLC, an affiliate of Apollo Global Management (NYSE:APO) funds, finalized an underwriting agreement with several underwriters for the sale of 6,346,105 shares of Sun Country’s common stock, owned by the Selling Stockholder.

The transaction was concluded today, with Sun Country not receiving any proceeds from the sale of shares. In a concurrent move, the airline repurchased 630,914 shares from the underwriters at the same price paid to the Selling Stockholder, using cash on hand to fund this transaction. The audit committee and the board of directors of Sun Country approved the terms of the repurchase.

This offering marked the sale of the remaining shares held by the Selling Stockholder, effectively terminating Apollo’s governance rights under previous agreements with Sun Country upon the closing of the offering.

The offering and share repurchase were made under a shelf registration statement effective since January 12, 2023, and included a prospectus and a preliminary prospectus supplement dated February 10, 2025. The underwriting agreement is detailed in Exhibit 1.1 of the SEC filing.

The completion of this offering and share repurchase represents a significant financial event for the airline, as it navigates the complexities of the air transportation industry. The stock has shown strong recent performance, with an 8.3% gain in the past week, and InvestingPro analysis suggests the stock may be undervalued at current levels. Subscribers to InvestingPro can access a comprehensive Pro Research Report, which provides detailed analysis of Sun Country’s financial position among 1,400+ top US stocks. This information is based on a press release statement and market data.

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