Frontier calls 8% notes

New York, Oct. 7 - Frontier Oil Corp. called for redemption the $220 million 8% senior notes due 2013 issued by Frontier Escrow Corp. in anticipation of the completion of Frontier's merger with Holly Corp.

The notes have been held in escrow since their issuance on April 17. Release of the funds from escrow was dependent on the closing of the merger with Holly.

The Houston oil refining company will redeem the notes on Oct. 10 at a price of 101% of par plus accrued interest through Oct. 9.

On Aug. 20, Frontier announced that Holly had repudiated the March 30, 2003 merger agreement and that it had filed a lawsuit against Holly in Delaware Chancery Court. On Sept. 2, Holly filed a counterclaim against Frontier, alleging, among other things, that Frontier had breached the March 30 merger agreement. Trial on the related actions has been scheduled to begin in Delaware on Dec. 8.

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