DENVER (Sept. 15, 2003) Frontier Airlines, Inc. (Nasdaq: FRNT)
today announced it plans to sell 3,700,000 shares of its common stock pursuant
to an effective shelf registration statement previously filed with the Securities
and Exchange Commission. The underwriters have the option to purchase up to
an additional 555,000 shares of common stock from Frontier to cover over-allotments,
if any. Frontier intends to use 60 percent of the net proceeds from the offering
to pay down a portion of its government-guaranteed loan, and the remaining proceeds
for working capital and capital expenditures.
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.
This press release shall not constitute an offer to sell or the solicitation
of an offer to buy any securities. The offering is being made solely by means
of a prospectus, copies of which may be obtained by contacting Morgan Stanley
& Co. Incorporated, 1585 Broadway, New York, NY 10036.
Legal Notice Regarding Forward-Looking
Frontier notes that this press release contains forward-looking statements and
that certain information contained in this press release involves risks and
uncertainties that could result in actual results differing materially from
expected results. These statements include, but are not limited to, projections
about the Companys future performance, the ability to conserve financial
resources while operating in a highly competitive hub, the ability to increase
future revenues and the ability to achieve additional unit cost reductions.
Forward-looking statements represent the Companys expectations and beliefs
concerning future events, based on information available to the Company as of
the date of this press release. Forward-looking statements are inherently subject
to risks and uncertainties, many of which cannot be predicted with accuracy
and some of which might not even be anticipated. Some of the factors that could
significantly impact the forward-looking statements in this press release include,
but are not limited to: the uncertainty of leisure travel and corporate travel
expenditures as we enter the historically weak period of post-summer travel;
further downward pressure on airfares; unanticipated decreases in the volume
of passenger traffic due to terrorist acts or additional incidents that could
cause the public to question the safety and/or efficiency of air travel; negative
public perceptions associated with increased security wait times at various
domestic airports; the ability to secure adequate gate facilities at Denver
International Airport and at other airports where Frontier operates; weather,
maintenance or other operational disruptions; air traffic control-related difficulties;
the impact of labor issues; actions of the federal and local governments; changes
in the governments policy regarding relief to the airline industry especially
as it relates to war risk insurance; and the stability of the U.S. economy and
the economic environment of the airline industry. The Company undertakes no
obligation to publicly update or revise any forward-looking statements to reflect
events or circumstances that may arise after the date of this press release.
Additional information regarding these and other factors may be contained in
the Companys SEC filings, including without limitation, the Companys
10-K for its fiscal year ended March 31, 2003 and the Companys 10-Q for
the quarter ended June 30, 2003.