Frontier Airlines greenshoe exercised, raising deal to $92 million

By E. Janene Geiss

Philadelphia, Dec. 7 - Frontier Airlines, Inc. said Wednesday that underwriters of its recent public offering of convertible debentures exercised in full their over-allotment option and purchased a further $12 million of 5% convertible debentures. The deal is now sized at $92 million.

The debentures are convertible into Frontier common stock at a premium of 25% over the closing price of Frontier's common stock as of the Dec. 1 pricing date.

Frontier said it plans to use proceeds from the offering, about $88.7 million, to fund working capital and capital expenditures, including expenditures related to purchase and financing of aircraft and expansion of its operations.

The offering was underwritten by Morgan Stanley as bookrunner, with Citigroup Global Markets Inc. as co-manager.

Frontier is a Denver-based airline.

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