Details on Frontier $70 Million

20th Feb 2003

DENVER (Feb. 19, 2003) - After closing on a $70 million commercial loan facility supported by a guarantee of the Air Transportation Stabilization Board (ATSB) last Friday, Feb. 14, 2003, Frontier Airlines (Nasdaq: FRNT) today provided additional details on that transaction in a form 8-K filed with the Securities and Exchange Commission. In addition, Frontier President and Chief Executive Officer Jeff Potter and other members of senior management will host a webcast conference call on Friday, Feb. 21, 2003 at 8:00 a.m. MST to discuss the loan. The call is available via the World Wide Web on the airline’s Web site at on the Investor Relations page.

Highlights from the airline’s form 8-K, filed today, include the following:

? The loan was provided primarily by WestLB AG, with participation by Wells Fargo Bank, N.A., with a term of just over 52 months and a final maturity date of June 30, 2007. Repayment is to be completed through 14 consecutive quarterly installments of approximately $2.6 million, with the first installment due on Dec. 31, 2003, and a final balloon payment of $33 million due on the final maturity date.

? Sixty-three million of the airline’s $70 million loan is guaranteed by the ATSB, and two other parties each guaranteed repayment of an additional approximately $3.15 million each.

? Collateral pledged to the lenders and each of the guarantors of the loan includes a security interest in certain spare parts, engines, tools and equipment owned by Frontier. In addition, Frontier also pledged to the lenders and each of the guarantors a security interest in any income tax refund the Company receives from the Internal Revenue Service for the Company’s taxable year ending March 31, 2003.


? The ATSB received warrants to purchase 3,450,551 shares of the Company’s common stock, and each of the supplemental guarantors received warrants to purchase 191,697 shares of the Company’s common stock. Each of the warrants has an exercise price of $6.00 per share, subject to certain anti-dilution and other adjustments, and each includes registration rights. Each of the warrants expires seven years from the date of issue.

? Under the loan agreement, Frontier agreed to certain covenants through the term of the loan. These covenants relate to the Company’s ongoing financial reporting and disclosure obligations, payment of taxes, maintaining insurance, compliance with laws, and appraisal reports on the pledged collateral. The Company is also subject to certain negative covenants with respect to liens, mergers, asset sales, and payment restrictions upon certain events.
Additional details on each of the above points and further information relating to the loan can be found in the airline’s form 8-K filed today, February 19, 2003.
Denver-based Frontier Airlines employs approximately 3,100 aviation professionals and is the second largest jet service carrier at Denver International Airport. Frontier and its regional jet partner Frontier JetExpress offer service to 39 cities. Frontier’s fleet consists of 37 aircraft, which feature a single-class configuration. In 2002, for the fourth consecutive year, Frontier`s maintenance and engineering department has received the Federal Aviation Administration`s highest award, the Diamond Certificate of Excellence. This award signifies 100 percent of the airline’s maintenance and engineering employees have completed advanced aircraft maintenance training programs. In April 2002, Entrepreneur ranked Frontier one of two “Best Low-Fare Airlines.” Frontier provides capacity information and other operating statistics on its Web site, which may be viewed at



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