Wellington Management Acquires 5% of US Airways

[USA320Pilot]

Wellington Management has acquired 5% of US Airways per a recent SEC 13G filing made on April 30. To view the 13G form click here.

Wellington Management's website povides an overview of their company per the following paragraph.

Wellington Management's Overview - With approximately US$396 billion in client assets under management, Wellington Management serves as an investment advisor to over 1,600 institutions located in over 40 countries. We are not brokers, lenders or underwriters. Our expertise is investments — from global equities and fixed income to currencies and commodities. We like to describe ourselves as a collection of teams that create solutions designed to respond to specific client needs. Our most distinctive strength is our proprietary, independent research, which is shared across all areas of the organization and used only for managing our clients' portfolios. Wellington Management Company, LLP is a private partnership. We exist solely to meet the needs of our clients. An independent structure and collegial culture are two of the main reasons investment professionals join Wellington Management — and stay for their entire careers.

To view Wellington's website click here.

Regards,

USA320Pilot

 

[freedom]

THANK YOU UNCLE SAM

i'm going to be honest with you , i've never heard of this group




please , buy all of us !

 

[NAPAUS]

SO now maybe they can give US money to put on a decent IFE system. Since it seems no one else will lend them the money.

 

[flybynite]

I smell big money..........

 

[Be Careful What You Wish For.]

I smell big money..........

Let's hope so...UAL.4.0 or is it 5.0?

 

[BoeingBoy]

Actually it's just the opposite - Wellington ceased to be the owner of more than 5% of the stock. To quote the filing (emphasis mine):

Ownership of Five Percent or Less of Class.
If this statement is being filed to report the fact that as of the date hereof the reporting person has ceased to be the beneficial owner of more than five percent of the class of securities, check the following: [X]

According to the filing, this leaves Wellington with 2.65% of the stock and that would apparently be before US sells over 15 million new shares. Being the beneficial owner of nearly 14 million shares at the end of 2008 (the 2nd largest holder of US stock at 12+%) it appears that Wellington dumped most of it's shares.

Jim

 

[700UW]

I knew something didnt seem right, I remembered that Wellington had been an owner of a block of stock.

Good work Jim!

 

[fudgerunyard]

Ouch!!! Unless they purchased this stock back in July '08 when it was at its lowest level, $1.50 per share, they took a huge hit.

I'm sure it doesn't help LCC's 15 million share offering (asking $3.97 per share, stock currently at $3.75 )when one of its largest investors bails on it at the same time at $3.75 per share.

 

[BoeingBoy]

I remembered that Wellington had been an owner of a block of stock.

They were one of the initial outside investors that funded the merger and BK exit, getting a little over 9 million shares for their $150 million investment ($16.50/share). I haven't gone back to check, but I think they increased their holdings over time by buying from some of the other outside investors as those reduced their holdings.

Jim

 

[BoeingBoy]

I'm sure it doesn't help LCC's 15 million share offering (asking $3.97 per share, stock currently at $3.75 )when one of its largest investors bails on it at the same time at $3.75 per share.

FWIW, I just saw the press release saying that both the stock and senior debt offering were over-subscribed so US will be issueing all the extra stock and debt provided for in the offering. That brings the total number of shares up to 17,487,000 shares (from ~15 million) and the debt up to $172,500,000 (from $150 million). Expected net proceeds rises to $234 million.

I guess enough people thought the stock was offered cheap enough to be a good buy and that the senior debt's conversion price/interest rate was attractive.

Article

Jim

 

[freedom]

thanks jim , that makes much more sense ...