ORLANDO, Fla.,
April 22 /PRNewswire-FirstCall/ -- AirTran Holdings, Inc.
(NYSE: AAI), today announced that it intends to offer, subject to market and
other conditions,
$65 million of Convertible Senior Notes due 2015 (the
"Notes"). AirTran intends to grant the underwriters of the Notes offering a
30-day option to purchase an additional
$9,750,000 aggregate principal amount
of the Notes, solely to cover over allotments, if any.
The Notes will be convertible into AirTran common stock, at the option of
the holders of the Notes. The interest rate, conversion rate, conversion
price and other terms of the Notes will be determined at the time of pricing
of the offering. The Notes will be general senior unsecured obligations of
AirTran.
Concurrently with the offering of the Notes, AirTran intends to offer,
subject to market and other conditions 14,250,000 shares of its common stock.
The underwriters have the option to purchase up to an additional 2,137,500
shares of common stock from AirTran solely to cover over allotments, if any.
Morgan Stanley & Co. Incorporated ("Morgan Stanley") will act as
bookrunner for each of the offerings and Credit Suisse Securities (USA) LLC
("Credit Suisse") will act as co-lead manager for each of the offerings.
AirTran intends to place a portion of the net proceeds of the Notes
offering in an escrow account to acquire government securities in an amount
equal to the first six scheduled semi-annual interest payments due on the
Notes, AirTran intends to use the remaining net proceeds from the Notes
offering and the net proceeds of the common stock offering for general
corporate purposes, which may include additions to working capital, capital
expenditures, the retirement of debt, other investments in strategic
alliances, code-share agreements, or other business arrangements and, although
we are not presently in any negotiations, acquisitions of other airlines or
their assets. Pending the application of the net proceeds, AirTran intends to
invest the net proceeds in investment grade, interest bearing securities.
AirTran has filed a registration statement with the SEC for the offerings
of the Notes and the common stock to which this communication relates. Before
investing, please read the prospectus and prospectus supplements for the Notes
and the common stock offerings in the registration statement and other
documents filed with the SEC for more complete information about AirTran and
these offerings. These documents are available for free and may be obtained
by visiting the SEC website at http://www.sec.gov. Alternatively, copies of
the prospectus and the prospectus supplements for the Notes and the common
stock offerings are available by contacting Morgan Stanley at 180 Varick
Street, 2nd Floor, New York, New York 10014, Attention: Prospectus Department
or by email at prospectus@morganstanley.com, and Credit Suisse at One Madison
Avenue, New York, New York 10010 or by calling toll free 800-221-1037.
This news release shall not constitute an offer to sell or a solicitation
of an offer to buy, nor shall there be any sales of these securities in any
state or jurisdiction in which such an offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities law of
any such state or jurisdiction.
About AirTran Holdings, Inc.
AirTran Holdings, Inc., a Fortune 1000 company, is the parent company of
AirTran Airways, which ranked number one in the 2008 Airline Quality Rating
study and offers more than 700 affordable, daily flights to 58 U.S.
destinations. With 8,900 friendly Crew Members and America's youngest
all-Boeing fleet, AirTran Airways provides XM Satellite Radio and Business
Class seating on every flight. For more information and free online booking,
visit http://www.airtran.com.
Editors Note: This press release contains statements that contain
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. All statements, other than statements of
historical facts, in this press release may be deemed forward-looking
statements. We use words such as "anticipate," believe," "estimate,"
"expect," "intend," "may," "plan," "project," "will," "would" and similar
expressions or the negative thereof to identify forward-looking statements,
although not all forward-looking statements contain these identifying words.
We cannot guarantee that we actually will achieve the plans, intentions or
expectations disclosed in our forward-looking statements and, accordingly, you
should not place undue reliance on our forward-looking statements. There are
a number of important factors that could cause actual results or events to
differ materially from those expressed or implied by these forward-looking
statements, including those discussed under "Risk Factors" and elsewhere in
the referenced prospectus and prospectus supplements. Any forward-looking
statement speaks only as of the date on which it is made, and we undertake no
obligation to update any forward-looking statement to reflect new information,
events or circumstances after the date on which the statement is made or to
reflect the occurrence of unanticipated events. New factors emerge from time
to time, and it is not possible for us to predict which factors will arise.
In addition, we cannot assess the impact of each factor on our business or the
extent to which any factor, or combination of factors, may cause actual
results to differ materially from those contained in any forward-looking
statements. Additional information on factors that could influence AirTran's
financial results is included in its filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K, Quarterly Reports on
Form 10-Q and Current Reports on Form 8-K.
Media Contacts: AirTran Holdings, Inc.
Tad Hutcheson
Judy Graham-Weaver
Cynthia Tinsley-Douglas
Quinnie Jenkins
678.254.7442
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