AirTran Holdings Prices $100 Million of Convertible Notes.Business Editors/Travel Writers ORLANDO, Fla.--(BUSINESS WIRE)--May 1, 2003 AirTran Holdings AirTran Holdings (NYSE: AAI) is a Nevada corporation that operates as an airline holding company. Its primary asset is AirTran Airways. History After the large amount of negative publicity surrounding the Flight 592 incident, ValuJet Airlines suffered serious , Inc., (NYSE NYSE See: New York Stock Exchange :AAI AAI American Association of Immunologists. ), the parent company of AirTran Airways AirTran Airways is a low-cost airline that is a Delaware corporation with headquarters in Orlando, Florida, USA and is a subsidiary of AirTran Holdings. AirTran operates over 750 daily flights throughout the eastern USA and the Midwest, including over 270 daily departures from , Inc., today announced the pricing of its offering of $100 million of 7% Convertible Notes due 2023 to qualified institutional buyers pursuant to Rule 144A Rule 144A A Securities & Exchange Commission rule modifying a two-year holding period requirement on privately placed securities to permit qualified institutional buyers to trade these positions among themselves. under the Securities Act of 1933. The sale of the notes is expected to close on May 7, 2003. These notes are convertible into AirTran Holdings, Inc., common stock at a conversion rate of 89.9281 shares per $1,000 principal amount of notes (equal to an initial conversion price of approximately $11.12 per share), subject to adjustment in certain circumstances. Holders of the notes may convert their notes only if: (i) the price of the AirTran Holdings Inc.'s common stock reaches a specified threshold; (ii) the trading price Trading price The price at which a security is currently selling. for the notes falls below certain thresholds; (iii) the notes have been called for redemption; or (iv) specified corporate transactions occur. AirTran Holdings, Inc., may redeem all or some of the notes for cash at any time on or after July 5, 2010, at a redemption price Redemption price See: Call price redemption price 1. The price at which an open-end investment company will buy back its shares from the owners. In most cases, the redemption price is the net asset value per share. 2. equal to the principal amount plus accrued and unpaid interest, if any, to the redemption date Redemption date The date on which a bond matures or is redeemed. redemption date The date on which a debt security is scheduled to be redeemed by the issuer. The redemption date is the scheduled maturity date or, if applicable, a call date. . Holders may require AirTran Holdings, Inc., to repurchase the notes on July 1 of 2010, 2013 and 2018 at a repurchase price equal to the principal amount plus accrued and unpaid interest, if any, to the repurchase date. AirTran Holdings, Inc., may elect to pay the repurchase price in cash or in shares of common stock, or a combination of both, subject to certain conditions. The Company has granted the initial purchasers of the notes a 30-day option to purchase up to an additional $25 million principal amount of the notes. AirTran Holdings, Inc., plans to use the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the offering for working capital and general corporate purposes. This announcement is neither an offer to sell nor a solicitation to buy any of these notes and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. The notes being offered and the common stock issuable upon conversion of the notes have not been registered under the Securities Act, or any state securities laws, and may not be offered or sold in the United States absent registration under, or an applicable exemption from, the registration requirements of the Securities Act and applicable state securities laws. Editor's Note: The company issues financial statements quarterly. Statements regarding the Company's business model, continuous growth trends, strength of passenger demand and customers' response to our product are forward-looking statements and are not historical facts. Instead, they are estimates or projections involving numerous risks or uncertainties, including but not limited to, consumer demand and acceptance of services offered by the Company, the Company's ability to maintain current cost levels, commodity prices and actions by competitors, regulatory matters and general economic conditions. The Company disclaims any obligation to update or correct any of its forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the company's SEC filings, including but not limited to the company's report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2002. Copies of this filing may be obtained by contacting the Company or the SEC. |
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