TPG Selling Midwest Airlines to Republic Airways
CHICAGO (Reuters) - Republic Airways Holding Inc. said on Tuesday it would buy Midwest Airlines from private equity group TPG Capital for $6 million in cash and a $25 million note. In addition to getting all of Midwest's equity, Republic will receive TPG's $31 million secured note. After the completion of the deal, TPG may convert its $25 million five-year note to RJET stock at $10 per share. TPG also will have the right to nominate a member to Republic's board of directors. The deal comes a day after Republic said it would buy bankrupt U.S. regional carrier Frontier Airlines Holdings Inc (FRNTQ.PK) for $108.75 million. "This acquisition will enhance the strategic positioning of Republic Airways," Republic Chief Executive Bryan Bedford said of the Midwest purchase.
