The U.S. Department of the Treasury released detailed results today from auctions held between June 3 and June 13, 2024, to sell its warrants for purchasing common stock in 11 publicly traded airlines. On June 21, 2024, Treasury announced it had received $556,685,001 in aggregate proceeds from these auctions.
Treasury acquired these warrants as part of financial assistance and loans provided to U.S. airlines and other businesses during the pandemic under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the Consolidated Appropriations Act of 2021, and the American Rescue Plan Act of 2021. The auctioning of these warrants is part of Treasury's ongoing efforts to recover value for taxpayers post-pandemic.
The detailed results are as follows:
- Delta Air Lines, Inc.: Auctioned on June 5, raising $233 million with J.P. Morgan Securities LLC winning.
- United Airlines Holdings, Inc.: Auctioned on June 6, raising $222.5 million with Capital Ventures International winning.
- American Airlines Group Inc.: Auctioned on June 13, raising $32.6 million with SRS Partners Master Fund LP winning.
- SkyWest, Inc.: Auctioned on June 4, raising $36.2 million with Capital Ventures International winning.
- Alaska Air Group, Inc.: Auctioned on June 7, raising $17.25 million with J.P. Morgan Securities LLC winning.
- Southwest Airlines Co.: Auctioned on June 7, raising $5.65 million with Southwest Airlines Co. itself winning.
- Frontier Group Holdings, Inc.: Auctioned on June 5, raising $3.45 million with Citigroup Global Markets Inc. winning.
- Hawaiian Holdings, Inc.: Auctioned on June 6; raised $3.45 million with Citigroup Global Markets Inc., again as the winner.
- JetBlue Airways Corporation: Auctioned on June 3; raised $2.295 million won by D.E Shaw Valence Portfolios L.L.C.
- Spirit Airlines: Auctioned on June 3; raised $195 thousand won by Hudson Bay Master Fund Ltd
- Allegiant Travel Company: Raised a modest sum of just over ninety-five thousand dollars ($95k) in an auction held back then at least once before it ended up being sold off later after all.
The warrants sold have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States without registration or an applicable exemption from registration requirements.
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