Volaris Announces Pricing of U.S. $346 Million Global Initial Public Offering
MEXICO CITY, Sept. 18, 2013 /PRNewswire/ — Controladora Vuela Compania de Aviacion, S.A.B. (“Volaris” or the “Company”) (BMV: VOLAR, NYSE: VLRS), an ultra-low-cost airline based in Mexico, announced today that it has priced its initial public offering comprised of 61,992,540 Series A shares for the Mexican offering and 226,469,000 Ordinary Participation Certificates (CPOs) in the form on American Depositary Shares (ADSs) for the international offering at an initial offering price of Ps.15.51 per Series A share and U.S. $12.00 per ADS. Each ADS represents 10 CPOs and each CPO represents a financial interest in one Series A share of common stock of the Company. Shares are expected to begin trading on the Mexican Stock Exchange (BMV) and the New York Stock Exchange (NYSE) today, under the symbols “VOLAR” and “VLRS”, respectively.
Deutsche Bank Securities Inc., Morgan Stanley & Co. Incorporated and UBS Securities, LLC acted as international joint bookrunners; Santander Investment Securities Inc. and the before mentioned acted as joint local bookrunners. Santander, Evercore, Barclays Capital Inc., and Cowen and Company, LLC served as international co-managers; Evercore Casa de Bolsa, S.A. de C.V.and Barclays served as local co-managers.
Volaris (BMV: VOLAR and NYSE: VLRS), is an ultra-low-cost carrier, or ULCC, based in Mexico. Volaris utilizes its ULCC business model and efficient operations to offer low base fares and to stimulate demand while aiming to provide high quality customer service. Volaris targets passengers who are visiting friends and relatives, cost-conscious business people and leisure travelers in Mexico and to select destinations in the United States. Volaris’ unbundled pricing strategy allows it to provide low base fares and enables its passengers to select and pay for a range of optional products and services. Volaris’ mission is to offer its clients high quality customer service at an affordable price.
Since beginning operations in March 2006, Volaris has increased its routes from 5 to 80 and its fleet from 4 to 43 aircraft. Volaris operates an average of 203 flight segments daily on routes that connect 30 cities in Mexico and 10 cities in the United States with the youngest aircraft fleet in Mexico. Among other recognitions, Volaris has received the ESR Award for Social Corporate Responsibility for three consecutive years. For more information, please visit: http: //www.volaris.com
Safe Harbor Statement
This press release includes forward-looking statements. Volaris has based these forward-looking statements largely on its current expectations and projections about future events and financial trends affecting the financial condition of Volaris’ business. Forward-looking statements should not be read as a guarantee or assurance of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause such differences include, but are not limited to the competitive environment in Volaris’ industry; ability to keep cost low; changes in Volaris’ fuel cost, the effectiveness of Volaris’ fuel cost, hedges and Volaris’ ability to hedge fuel costs; the impact of worldwide economic conditions, including the impact of the economic recession on customer travel behavior; actual or threatened terrorist attacks, global instability and potential U.S. military actions or activities; ability to generate non-ticket revenues; external conditions, including air traffic congestion, weather conditions and outbreak of disease; ability to maintain slots in the airports that we operate and service provided by airport operators; ability to operate through new airports that match Volaris’ operative criteria; air travel substitutes; labor disputes, employee strikes and other labor-related disruptions, including in connection with Volaris’ negotiations with the union representing Volaris’ flight attendants and pilots; ability to attract and retain qualified personnel; loss of key personnel; aircraft-related fixed obligations; dependence on cash balances and operating cash flows; Volaris’ aircraft utilization rate; maintenance costs; Volaris’ reliance on automated systems and the risks associated with changes made to those systems; use of personal data; lack of marketing alliances; government regulation and interpretation and supervision of compliance with applicable law; maintaining and renewing Volaris’ permits and concessions; Volaris’ ability to execute Volaris’ growth strategy; operational disruptions; Volaris’ indebtedness; Volaris’ liquidity; Volaris’ reliance on third-party vendors and partners; Volaris’ reliance on a single fuel provider in Mexico; an aircraft accident or incident; Volaris’ aircraft and engine suppliers; changes in the Mexican and VFR markets; insurance costs; environmental regulations; and other risk factors included under “Risk Factors” in the prospectus Volaris has on file with the United States Securities and Exchange Commission.
In addition, in this press release, the words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “predict,” “potential” and similar expressions, as they relate to Volaris, its business and its management, are intended to identify forward-looking statements. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this press release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements.
All forward-looking statements attributable to Volaris or persons acting on its behalf are expressly qualified in their entirety by the cautionary statements set forth above. Forward-looking statements speak only as of the date of this press release. You should not put undue reliance on any forward-looking statements. Volaris assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, except to the extent required by applicable law. If Volaris updates one or more forward-looking statements, no inference should be drawn that Volaris will make additional updates with respect to those or other forward-looking statements.