Printer Friendly

AIRTRAN REDEEMS STOCK HELD BY NORTHWEST AIRLINES

 MINNEAPOLIS/ST. PAUL, Dec. 24 /PRNewswire/ -- AirTran Corporation (NASDAQ-NMS: ATCC) announced today an agreement to redeem $8,000,000 of AirTran stock held by Northwest Airlines' subsidiary Northwest Aircraft, Inc. The AirTran board of directors has approved the buy-back of 1,000,000 shares at $8.00 per share. Northwest will be entitled to an additional $1.00 per share on July 1, 1994, under certain circumstances, including a requirement that AirTran's average closing bid price exceeds $12.00 per share during a 20-day consecutive period in June 1994. Northwest retains ownership of 189,272 shares and continues to hold warrants for an additional 1,529,862 shares of AirTran common stock. As part of the agreement, Northwest agreed to an 18-month "standstill" on the sale or exercise of remaining shares of common stock and warrants held by Northwest.
 "Northwest requested that we participate in their refinancing package and we are able to do so through this stock redemption program," said AirTran Chairman Robert Swenson. "We look forward to further growth in our role of providing connecting traffic to Northwest Airlines."
 AirTran Corporation is the parent company of Mesaba Aviation, Inc. Northwest Aircraft, Inc., acquired the AirTran stock through a series of transactions involving guarantees of financing for Mesaba aircraft, as well as the granting of the exclusive rights for Mesaba to serve as the Northwest Airlink carrier at Northwest's Detroit hub.
 Mesaba is a regional airline providing scheduled passenger service to 45 cities in 15 states and the Province of Ontario under the name Mesaba/Northwest Airlink. AirTran stock is traded on the NASDAQ National Market System under the symbol ATCC.
 -0- 12/24/92
 /CONTACT: John S. Fredericksen, vice president-general counsel of Mesaba Aviation, 612-726-5189, ext. 351; fax, 612-726-1568/
 (ATCC)


CO: AirTran Corporation; Mesaba Aviation; Northwest Airlines ST: Minnesota, Michigan IN: AIR SU:

DS -- MN002 -- 9862 12/24/92 14:15 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 24, 1992
Words:314
Previous Article:INVESTMENT COMPANY INSTITUTE REPORTS ASSETS OF MONEY MARKET MUTUAL FUNDS
Next Article:BARNETT 'BBB+' SENIOR DEBENTURES AFFIRMED, REMOVED FROM FITCHALERT -- FITCH FINANCIAL WIRE --
Topics:


Related Articles
AIRTRAN CORPORATION INCREASES QUARTERLY CASH DIVIDEND
AIRTRAN CORPORATION ANNOUNCES QUARTERLY DIVIDEND
AIRTRAN ANNOUNCES QUARTERLY DIVIDEND
AIRTRAN ANNOUNCES QUARTERLY DIVIDEND
AIRTRAN ANNOUNCES QUARTERLY DIVIDEND
AIRTRAN ANNOUNCES QUARTERLY DIVIDEND
AIRTRAN ANNOUNCES QUARTERLY DIVIDEND
AIRTRAN ANNOUNCES QUARTERLY DIVIDEND
AIRTRAN ANNOUNCES QUARTERLY DIVIDEND
AIRTRAN CORPORATION ANNOUNCES QUARTERLY DIVIDEND

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters