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Feb 14, 2003
Frontier Airlines Closes $70 Million Term Loan
DENVER (Feb. 14, 2003) - Frontier Airlines (Nasdaq: FRNT) today announced it has closed on and received the proceeds from a $70 million term loan of which $63 million is guaranteed by the Air Transportation Stabilization Board (ATSB), with smaller portions guaranteed by other parties. Frontier received conditional approval for the loan on Nov. 5, 2002. The loan was provided by WestLB, a large European bank, with additional participation by Wells Fargo Bank, N.A. As one of the conditions of the loan, Frontier Airlines issued warrants to the guarantors to purchase approximately 11.1 percent of the company's outstanding common stock as of closing.
"On behalf of Frontier's 3,100 employees, we thank Dan Montgomery and the entire ATSB staff for their tireless efforts in closing this loan and their belief in Frontier Airlines and its future. We are also extremely thankful for the support shown to us by the lending institutions, WestLB and Wells Fargo, and our strategic partners who provided additional support for the transaction. It took a concerted effort and long hours by all involved to reach the goal of closing this transaction in a timely manner. Today's transaction provides additional liquidity for Frontier as the industry continues to struggle in the aftermath of the September 11, 2001 terrorist attacks. We are proud of the airline we have built since our inception in 1994, and it is our goal to continue providing affordable, competitive air service to our nation's air transportation system," said Frontier President and CEO Jeff Potter.
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 www.frontierairlines.com.
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