Virgin America Inc., the U.S. airline partly owned by U.K. billionaire Richard Branson, plans an initial public offering to finance growth.
Stock will be offered by Cyrus Capital Partners LP as well as by employee and holding companies, the Burlingame, California-based company said today in a Securities and Exchange Commission filing. The number of shares on offer and the price have yet to be determined, Virgin America said.
Virgin America, which began flying in 2007, has considered holding an IPO since about 2012. Chief Executive Officer David Cush said almost a year ago that a stock sale would be possible as long as the carrier posts several consecutive quarters of earnings growth. A transaction is unlikely before late 2014 as the airline focuses on showing sustained profit, he said in November. The carrier posted a first-quarter net loss.
The company hired Barclays Plc (BARC) and Deutsche Bank AG (DBK) to handle the sale, the airline said today.
Virgin America, which started service in August 2007, has a fleet of Airbus SAS A320 single-aisle jets and flies to destinations including San Francisco, Los Angeles, Las Vegas, New York’s John F. Kennedy airport and Boston. Some of the proceeds from the share sale will support fleet growth, the company said.
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