Republic Airways sells Frontier Airlines in $145 mln deal

Tue Oct 1, 2013 8:36am EDT

Oct 1 (Reuters) - Republic Airways Holdings Inc said it would sell Frontier Airlines to Indigo Partners LLC in a deal valued at about $145 million.

The deal puts an end to Indianapolis-based Republic's two-year long search to sell Frontier, which it bought out of bankruptcy in 2009.

Indigo will pay $36 million in cash for the equity of Frontier Holdings and assume Frontier's debt.

Republic also said it would assign its rights under agreements relating to its Airbus A320neo order to Frontier in exchange for reimbursement of $32 million of pre-delivery deposits.

Shares of Republic closed at $11.89 on the Nasdaq on Monday.

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