Avelo is Looking to Raise Up To $100 million
Running low on cash, the U.S. low-cost airline has hired Jeffries to help it after a rough first quarter.
Dear readers,
With its cash-on-hand at one point projected to fall below $2 million in June (along with slightly more more than $6 million in short-term investments), Avelo Airlines has hired Jefferies to help it raise as much as $100 million — about $50 million for growth and the rest to shore up the company's finances, including reducing its leverage, according to a slide deck and other materials shared with The Airline Observer.
In a brief interview, Avelo CEO Andrew Levy confirmed that he had hired Jeffries and sought to raise money but did not comment on the cash position. He told me that Avelo may raise money in two tranches — first a smaller deal for short-term liquidity, and then the $75-to-$100 million figure cited in the deck. Levy said early discussions with prospective investors have been "fruitful," and he assured me that Avelo’s prospects look far better for the rest of the year than in the first quarter, when it took a big loss.