Frontier Airlines, Inc. (Nasdaq: FRNT) today announced the pricing of its public offering of 4,700,000 newly-issued shares of common stock at $17 per share. The Company increased the offering by 1,000,000 shares from its 3,700,000 share offering announced September 15. Frontier expects net proceeds from the offering to be approximately $75.5 million, 60 percent of which will be used to pay down a portion of the Company’s government-guaranteed loan. The Company intends to use the remaining proceeds for working capital and capital expenditures. The underwriters have the option to purchase up to an additional 700,000 shares of common stock from Frontier to cover over-allotments, if any.
Morgan Stanley is the sole bookrunning manager on this transaction, with Merrill Lynch & Co. and Raymond James & Associates, Inc. acting as co-managers.
Currently in its tenth year of operations, Denver-based Frontier Airlines is the second largest jet service carrier at Denver International Airport with a fleet of 38 aircraft and employing over 3,500 aviation professionals. Frontier and its affiliate Frontier JetExpress currently serve 39 U.S. cities with approximately 194 daily flights.