Skip to main content

US Airways Gets More Greenbacks

The company raises $113 million as investors exercise options to buy added shares.
  • Author:
  • Publish date:

The new

US Airways


is topping off its cash tank as the airline industry heads into the seasonally weak winter months.

The carrier, which resulted from last month's merger of the old US Airways and

America West

, said it raised a total of $113 million as investors exercised all of their options to purchase additional company shares.

US Airways has now gathered $867 million in equity, an amount it says is the most ever raised by a U.S. airline.

The cash hoard, including restricted cash, now exceeds $2.5 billion, even though US Airways has spent $116 million since the merger to repurchase warrants from the government and $125 million to retire debt to

General Electric

(GE) - Get Free Report


Investment manager Wellington Management, along with hedge funds PAR Investment Partners, Peninsula Investment Partners and the Tudor Group, exercised options to purchase a total of 7.5 million shares at a price $15.

The firms all previously provided equity backing the merger, making them major stakeholders in the new airline.

News of the options exercise comes just two days after US Airways said it had found buyers for $777 million of existing debt. That allowed the airline to pay back the Air Transportation Board, which had guaranteed $752 million of the debt.

The ATSB, set up in the aftermath of the Sept. 11, 2001, terrorist attacks to help the struggling U.S. airline industry, had guaranteed loans to both the old US Airways and America West.

Shares of US Airways gained $1, or 4.8%, to $22.02 Friday.