Frontier Group Closes in on IPO
Frontier Group Holdings has amended its filing with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO).
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Frontier Group Holdings has registered an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). No pricing details were mentioned in the filing. The company intends to list its shares on the Nasdaq under the symbol FRNT.
The underwriters for the offering are Citigroup, Deutsche Bank, Evercore ISI, JPMorgan, Merrill Lynch, Barclays, Cowen, Credit Suisse, Goldman Sachs, Raymond James and UBS Investment Bank.
Frontier Airlines is an ultra-low-cost carrier (ULCC) with a business strategy focused on “Low Fares Done Right.” The company offers flights throughout the United States and to select international destinations in Mexico and the Caribbean. Its unique and sustainable strategy is underpinned by its low-cost structure and superior ULCC brand.
At the end of March 2017, the firm operated a fleet of 68 narrow-body Airbus A320 family aircraft, which it expects to grow to 121, including 80 A320neo (New Engine Option) family aircraft, by the end of 2021. In the 12 months ended March 2017, Frontier served approximately 15.4 million passengers across a network of 61 airports.
[nativounit]
In the filing, Frontier detailed its metrics:
As a result of these and other initiatives, we have reduced our cost per available seat mile (CASM) (excluding fuel) from 7.89¢ for the year ended December 31, 2013 to 5.74¢ in the year ended December 31, 2016, and our Adjusted CASM (excluding fuel) from 7.89¢ for the year ended December 31, 2013 to 5.43¢ in the year ended December 31, 2016, an improvement of 27% and 31%, respectively. In 2016, this was one of the U.S. industry’s lowest unit operating costs. For the three months ended March 31, 2017 and 2016, our Adjusted CASM (excluding fuel) was 5.50¢ and 5.90¢, respectively.
The company intends to use the net proceeds from this offering to fund into a trust the expected cash portion of its obligations under the Pilot Phantom Equity Agreement for the benefit of the participating pilots in connection with the completion of this offering. The remainder will be put toward working capital and general corporate purposes.
[wallst_email_signup]
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
