Mexican airline’s secondary offering a first

Author: Edward Price | Published: 27 Nov 2015

The follow-on secondary offering of Mexican low-cost airline Volaris has become the only SEC-registered deal in Mexico in 2015. Counsel involved in the transaction believe it’s also likely the first time a Latin American company’s secondary offering was sold exclusively in the US.

Paul Hastings represented Morgan Stanley and Deutsche Bank as the lead underwriters in the deal. The Mexican airline is formally known as Controladora Vuela Compañía de Aviación. Its $175 million offering saw the shares registered with the SEC, and listed on the New York Stock Exchange (NYSE). The deal is also an indication of the growing cross-border market between the US and Mexico, and the adoption of a US-style aviation industry in Latin America.

"This deal is the only SEC-registered deal in Mexico, if not Latin America, this year. But it’s more significant,...