PHOENIX, March 29, 2024 – Indigo Partners Llc, a prominent private equity firm specializing in air transportation, has announced a strategic distribution of its Frontier Group Holdings, Inc. (NASDAQ: ULCC) shares. This move marks the conclusion of a successful decade-long investment fund managed by Indigo Partners LLC, established in 2013 to facilitate the acquisition of Frontier Airlines. The distribution will see shares of Frontier common stock allocated to the fund’s members, including key stakeholders such as William A. Franke, Chairman of Frontier’s Board of Directors, and investors like George Roberts and an investment fund advised by Wildcat Capital Management, which also advises David Bonderman.
This pro-rata, in-kind distribution is a natural step as the investment fund, which had a pre-defined 10-year term, reaches its dissolution. Indigo Partners LLC currently holds a significant 80% stake in Frontier, equating to 178,834,034 shares of common stock. As part of this planned distribution, approximately 99.4 million shares, representing around 44% of the outstanding shares, will be distributed to Mr. Franke or entities under his direct or indirect control. The remaining shares will be distributed pro-rata to Indigo Partners LLC’s investors who are not affiliated with Mr. Franke, expected to be completed on or around April 1, 2024.
William A. Franke, reflecting on the past decade, stated, “During the past 10 years, we have made significant progress solidifying Frontier’s position as a preeminent leader in the ultra-low-cost carrier category. While the Indigo limited partnership has come to its natural conclusion, I look forward to continuing to serve as Chair of the Frontier Board and participating in the upside of the Company’s bright future.” His statement underscores the continued commitment of Indigo Partners LLC’s leadership to Frontier Airlines, even as the ownership structure evolves.
George Roberts echoed this positive sentiment, “I am pleased to have had the opportunity to work with Bill and David to invest in and support Frontier’s growth into an industry leader throughout the duration of this limited partnership. As we look to this next stage in Frontier’s growth, I am confident that Frontier will build on the momentum created to date.” David Bonderman further reinforced his long-term belief in the airline, stating, “I have long supported Frontier and believe it has the right strategy to compete and grow going forward.”
Corporate Governance Evolution for Frontier Airlines
Following the share distribution, Frontier Group Holdings will transition from being classified as a “controlled company” under Nasdaq Stock Market LLC rules. This change necessitates certain corporate governance adjustments within permitted phase-in periods. Notably, Frontier will be required to establish a compensation committee and a director nomination process, both comprised solely of independent directors. In anticipation of these changes, William A. Franke has stepped down from the Company’s Nominating and Corporate Governance Committee. He will, however, remain a director and continue to serve as the Chair of the Board, ensuring continuity in leadership.
About Indigo Partners LLC: Shaping the Low-Cost Airline Landscape
Indigo Partners LLC, founded in 2003 by W. A. Franke, is a distinguished private equity firm dedicated to the air transportation industry and related sectors. With a proven track record, Indigo Partners LLC has been instrumental in the growth and success of numerous ultra-low-cost carriers (ULCCs) globally. The firm’s portfolio includes significant investments in:
- Wizz Air Holdings, Plc: A leading ULCC with a strong presence across Central and Eastern Europe.
- Frontier Airlines: A prominent ULCC based in Denver, USA, and a core holding within Indigo Partners LLC’s portfolio.
- Volaris Airlines: A major ULCC operating from Mexico City, serving domestic and international routes.
- Cebu Pacific: A leading ULCC in the Philippines, connecting various destinations in Asia and beyond.
- JetSMART: A rapidly expanding ULCC based in Chile, serving the South American market.
Headquartered in Phoenix, Arizona, Indigo Partners LLC has consistently demonstrated its expertise in identifying and nurturing high-potential airlines within the ULCC segment. The firm’s strategic investments and operational guidance have been pivotal in shaping the competitive landscape of budget air travel worldwide. The distribution of Frontier shares marks a natural progression in Indigo Partners LLC’s investment lifecycle, while reaffirming the firm’s enduring influence and commitment to the aviation sector through its continued involvement and leadership at Frontier Airlines.
Forward-Looking Statements
This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and beliefs and are subject to risks and uncertainties. Terms like “expects,” “will,” “intends,” “anticipates,” “believes,” and similar expressions identify forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties, and assumptions that are difficult to predict. Indigo Partners LLC undertakes no obligation to update any forward-looking statement, except as required by law.
Contact:
Lambert
Joanne Lessner
[email protected]
212-222-7436
