Apollo Sells Sun Country Shares Amid Buyback
Apollo Global Management is set to sell 6.34 million shares of common stock in Sun Country Airlines (SY, Minneapolis St. Paul International), representing roughly 12% of the carrier’s outstanding shares, according to a recent SEC filing. The sale comes as part of a secondary public offering arranged by Sun Country Airlines Holdings, Inc. through SCA Horus Holdings, LLC, as detailed in a prospectus dated February 10, 2025.
In addition to the share sale, Sun Country Airlines has authorized a repurchase of approximately USD10 million worth of these shares from Apollo. The buyback, funded by the airline’s existing cash reserves, is expected to see the carrier reacquire around 606,060 shares at a price of USD16.50 per share. This dual move—selling a significant block of shares while simultaneously initiating a stock repurchase—reflects a strategic effort by the airline to balance its capital structure and potentially enhance shareholder value.
Apollo Global Management, a New York-based private equity firm, originally acquired its stake in Sun Country Airlines when it purchased the carrier from founders Marty and Mitch Davis in December 2017 for an undisclosed amount. The decision to sell now marks a significant shift in Apollo’s investment strategy as it seeks to monetize its holding. The sale could also provide Sun Country with an infusion of liquidity and a more streamlined shareholder base, which might support future growth initiatives.
Sun Country Airlines, known for its low-cost model and expanding network, currently operates a fleet of 58 aircraft. This fleet includes 44 Boeing 737-800s and 13 Boeing 737-800(BCF)s, along with one Boeing 737-900ER. In a further boost to its long-term fleet strategy, the carrier acquired an additional four Boeing 737-900ERs from GOAL in 2023. These aircraft are scheduled to enter service between 2025 and 2026 as their leases from Oman Air expire, promising to enhance Sun Country’s operational capacity on long-haul routes.
The move by Apollo is one among several transactions in the dynamic aviation finance landscape, reflecting the broader trend of private equity firms reassessing their holdings as market conditions evolve. Meanwhile, the principal shareholders of Sun Country Airlines Holdings include prominent institutional investors such as BlackRock Advisors LLC, holding 12.77% of the shares, Apollo with 12%, Barclays PLC with 10.48%, Vanguard Fiduciary Trust Co. with 8.7%, and Macquarie Investment Management with 5.7%. This diverse ownership structure underscores the strong institutional interest in the carrier, even as it navigates an increasingly competitive market.
Industry analysts suggest that the repurchase program could serve to mitigate dilution and support the stock price, while the sale by Apollo might free up capital for new investments or debt reduction. With the airline industry facing ongoing challenges and opportunities alike, moves such as these are closely watched by investors seeking to understand the strategic direction of key players like Sun Country Airlines.
As the transaction progresses and awaits final regulatory approval, stakeholders will be keenly observing how these financial maneuvers impact Sun Country’s balance sheet and future growth prospects. The deal is expected to close in the near term, marking a new chapter for both Sun Country Airlines and Apollo Global Management.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com