Onex to sell some of its Spirit AeroSystems stock
06/11/2014 2:03 PM
08/08/2014 10:24 AM
Spirit AeroSystems is planning a public secondary offering of 8.17 million shares of class A common stock, the company announced Wednesday.
The shares are being offered by affiliates of Onex Corp. and current and former members of Onex management.
In 2005, Onex bought Boeing’s commercial aviation division in Wichita, which formed Spirit. It became a publicly traded company in 2006.
At the completion of the offering, Onex will no longer maintain voting control of the company, Spirit said.
Spirit will not receive any proceeds from the offering.
Spirit also announced that it will repurchase 4 million shares of the class A stock offered by Onex from the underwriters. It will buy the stock from cash on hand, it said.
Morgan Stanley and Barclays are acting as underwriters for the offering.
After the sale of shares, Onex will remain the largest individual shareholder of Spirit stock, said Spirit spokesman Ken Evans. But it won’t retain enough shares to have voting control as a single entity.
Currently, Spirit has two classes of stock – Class A common stock and Class B common stock.
Holders of Class A stock are entitled to one vote per share, while holders of Class B stock have 10 votes per share.
Onex holds 96 percent of Class B stock, which gives it 73 percent of the total voting power.
With the sale of stock, its voting power will drop below 50 percent.