Brief: Alaska Airlines And Hawaiian Airlines To Combine With Transaction Value Of Approximately $1.9 Billion, Inclusive Of $0.9 Billion Of Hawaiian Airlines Net Debt

Hawaiian Holdings

03/12/2023 19:08

Dec 3 (Reuters) - Alaska Air Group Inc  ALK.N :
    * ALASKA AIRLINES AND HAWAIIAN AIRLINES TO COMBINE,
EXPANDING
BENEFITS AND CHOICE FOR TRAVELERS THROUGHOUT HAWAI'I AND THE
WEST COAST
    * TRANSACTION VALUE OF APPROXIMATELY $1.9 BILLION, INCLUSIVE
OF
$0.9 BILLION OF HAWAIIAN AIRLINES NET DEBT.
    * ALASKA AIRLINES WILL ACQUIRE HAWAIIAN AIRLINES FOR $18.00
PER
SHARE IN CASH
    * APPROXIMATELY $235 MILLION OF EXPECTED RUN-RATE SYNERGIES
REFLECT A CONSERVATIVE ESTIMATE OF TRANSACTION'S SYNERGY
POTENTIAL
    * NO ANTICIPATED MATERIAL IMPACT ON LONG-TERM BALANCE SHEET
METRICS
    * COMBINED ORGANIZATION WILL BE BASED IN SEATTLE UNDER
LEADERSHIP
OF ALASKA AIRLINES CEO BEN MINICUCCI
    * ALASKA AIR- EXPECTED TO GENERATE HIGH SINGLE DIGIT
EARNINGS
ACCRETION FOR CO WITHIN FIRST TWO YEARS POST-CLOSE AND MID-TEENS
ROIC BY YEAR THREE
    * ALASKA AIR -DEAL IS CONDITIONED ON REQUIRED REGULATORY
APPROVALS, APPROVAL BY HAWAIIAN HOLDINGS. SHAREHOLDERS (EXPECTED
TO BE SOUGHT IN Q1 2024)

Source text for Eikon:  ID:nPn50MTb6a 
Further company coverage:  ALK.N 

 ((Reuters.Briefs@thomsonreuters.com;))