Federal Agency Sells Frontier Airline Warrants

The U.S. Department of the Treasury issued the following press release:

The Air Transportation Stabilization Board today announced the sale of the 3,450,551 warrants that it received in connection with the issuance of a loan guarantee to Frontier Airlines. The warrants were purchased in an auction by seven institutional investors at a price of $2.03 per warrant. Total net proceeds to the government were $6,608,604.

The ATSB still holds warrants in World Airways. The ATSB currently has no outstanding loan guarantees, but the Board has a direct loan of $86 million to ATA Airlines as a result of the airline's bankruptcy.

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