By The parent company of Hawaiian Air, Alaska Air Inc., has announced its acquisition of the regional carrier, causing Hawaiian Air’s stock to surge by an impressive 186%. This acquisition marks a significant milestone for both companies in the aviation industry.
Bonds Rally Following Acquisition News
In addition to the surge in stock prices, Hawaiian Air’s bonds have also experienced a rally. The 5.75% note set to mature in January 2026 saw a staggering 18% increase, as indicated by data solutions provider BondCliQ Media Services’ chart.
Sell-Off Indicates Profit-Taking
Despite the positive trend, there has been some net selling of Hawaiian Air’s bonds on Monday, which is likely due to portfolio managers taking advantage of the strong gains to secure profits. This is evident from another chart illustrating the bond’s performance.
Alaska Air’s Acquisition Details
Late Sunday, Alaska Air announced its acquisition of Hawaiian Air for $18 per share in cash. This offer represents a significant premium of 270% over the closing price on Friday, which stood at $4.86. Along with this cash offer, Alaska Air will be assuming approximately $900 million of Hawaiian Air’s net debt, resulting in a total equity value of around $1 billion.
Expanded Fleet and Destination Cities
This acquisition will propel Alaska Air to become the fifth-largest airline in the country, boasting a combined fleet of 365 airplanes and serving 138 destination cities. The company anticipates serving a total of 54.7 million passengers annually. It also plans to establish Honolulu as a key hub, offering expanded service between Hawaii and the mainland U.S., as well as new connections for flights to and from Asia.
Retaining Brands and Headquarters
Both Hawaiian Air and Alaska Air will retain their respective brands despite becoming part of the combined company. The headquarters for the combined entity will be based in Seattle, embracing the shared strengths of the two airlines’ complementary domestic, international, and cargo networks.
Commitment to Hawaii
Alaska Air has made it clear that it intends to maintain a strong presence in Hawaii following the acquisition. The company plans to expand union-represented jobs and make local investments, further solidifying its commitment to the Hawaiian market.
Promising Year-to-Date Performance
Hawaiian Air’s stock has seen a notable upswing of 35% since the beginning of the year. In comparison, the S&P 500 has experienced a 19% gain, highlighting the impressive growth of Hawaiian Air in the market.
Note: Due to the removal of contact details, references to stock symbols and financial changes have been adjusted accordingly.
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