Wants Proceeds For More Aircraft

Gulfstream International Group Inc., has reduced the expected price range of its initial public offering, according to a Securities and Exchange Commission filing on November 13, 2007. Gulfstream now expects the offering to price between $8 and $10 per share, compared with the previously anticipated range of $11 to $13 per share, said the Associated Press.

The company which owns a regional airline and flight training school also increased the size of the proposed IPO to 1.2 million shares from 1 million shares. The reduction lowers the company's expected net proceeds to about $8.4 million, from $10.2 million. An adjusted accounting of proceeds assumes an offering price of $9 per share.

The Fort Lauderdale, Fla.-based company Gulfstream is a holding company operating Gulfstream International Airlines Inc. and Gulfstream Training Academy Inc. Gulfstream's commercial airline operates more than 200 flights daily and serves destinations in Florida and the Bahamas. The flight academy provides training services to licensed commercial pilots.

For second quarter earnings ending June 30, Gulfstream's adjusted earnings dipped to $3.5 million from $3.8 million in the first half of 2006. During the same period, revenue grew to $61.2 million from $57.5 million.

Gulfstream expects to use the IPO's anticipated net proceeds to span its earning loss for general working capital purposes, which may include the acquisition of more aircraft or the refinancing of existing aircraft.

Gulfstream hopes to have about 3.2 million shares outstanding after the IPO. Taglich Brothers, Avondale Partners and Maxim Group are underwriting the IPO. The groups have an option to buy up to 180,000 additional shares from Gulfstream to cover any over allotments.

FMI: www.gulfstreamair.com