Frontier IPO Presentation Deck
Additional Financial Details:
Warrants Issued to U.S. Treasury
April 30, 2020
.
On April 30, 2020, an agreement with
the U.S. Government was reached to
receive funding under the Payroll
Support Program ("PSP"). As of
December 30, 2020 and through the
date of this report, $211M of
installment funding was received,
comprised of a $178M grant and a
$33M unsecured promissory note.
In relation to the PSP promissory note,
warrants were issued to the Treasury
to purchase up to 522,576 shares of
common stock, with an exercise price
of $6.36 per share as determined by
an independent third-party valuation
on April 9, 2020
The warrants have a 5 year term and
are subject to cash settlement upon 60
days notice from the U.S. Department
of Treasury
The warrants have been classified as
liability based awards within other
current liabilities. The liability is
marked to market each period, with the
corresponding fair market value
adjustment booked to interest expense
Source: Company filings
FRONTIER
September 28, 2020
On September 28, 2020, the Company
entered into an agreement with the
U.S. Government for a term loan
facility of up to $574M. As of
December 30, 2020 and through the
date of this report, the Company has
borrowed $150M under this
agreement.
In relation to the Treasury Loan,
warrants were issued to the Treasury
to purchase up to 2,358,090 shares of
common stock, with an exercise price
of $6.36 per share as determined by
an independent third-party valuation
on April 9, 2020
Warrants follow the same accounting
treatment as the warrants issued
under the initial PSP
FINANCIAL DETAILS
January 15, 2021
On January 15, 2021, the Payroll
Support Program Extension
Agreement was executed with the U.S.
Government to receive additional
funding ("PSP2"). As of December 30,
2020 and through the date of this
report, $140M in additional installment
funding was received, comprised of a
$128M grant and a $12M unsecured
promissory note.
In relation to the PSP2 promissory
note, warrants were issued to the
Treasury to purchase up to 103,208
shares of common stock, with an
exercise price of $11.65 per share as
determined by an independent third-
party valuation on April 9, 2020
Warrants follow the same accounting
treatment as the warrants issued
under the initial PSP
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