Spirit Airlines IPO price at $12, low end of range

[mickey2000]

Anyone else wonder why all of a suuden they are going public with stock??
Why do they need all this cash ? I always thought with ALL thier fees, #2 in our country they were doing ok?
What are your thoughts?

 

[Lewisc]

They want to pay down debt. Price for jet fuel is up. Reduce interest payments. The fact that they can find people to buy the stock, even at the low end of the price range and fewer shares then originally intended, suggests the airline isn't in danger of immediate bankruptcy.

 

[OrangeCountyCommuter]

I am trying to think of a worse investment. I cannot. Spirit? I won't fly them if they paid me. Why would I want to own part of that disaster?

 

[PlutoPony]

It will be interesting to see who buys the stock. Wouldn't expect institutionals to put more money into airlines right now, especially Spirit given their fairly recent pr and labor issues.