ExpressJet (XJT)

[TikiGal]

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Now I would like to pick your brain on tonight's pr. lol!

Posted by: side_job Date: Tuesday, July 29, 2008 7:05:11 PM
In reply to: None Post # of 8082

HOUSTON, July 29, 2008 /PRNewswire-FirstCall via COMTEX/ -- ExpressJet Holdings
(NYSE: XJT) today announced the number of shares of its common stock that will
be issued in exchange for each of its 4.25% Convertible Notes due 2023 that is
validly tendered under the company's previously announced Offer to Exchange,
dated July 2, 2008. The company is conducting the exchange offer as required by
the indenture governing the notes. Pursuant to the indenture, the company has
determined that holders who validly tender and do not withdraw their notes prior
to the expiration date of the tender offer will receive 2,684 shares for each
$1,000 in principal amount tendered. This calculation is based upon 97.5% of the
average closing sale price of the common stock for the five consecutive trading
days ending on July 29, 2008, which closing prices were $0.43, $0.36, $0.38,
$0.37 and $0.37, respectively, as reported by the New York Stock Exchange Group.

(Logo: http://www.newscom.com/cgi-bin/prnh/20080221/NYFNSN01LOGO)

The company has previously announced its intention to unilaterally amend the
indenture governing the notes in order to provide improved terms and additional
flexibility for the notehol! ders. Th ese benefits will apply to any noteholder
holding the notes on August 2, 2008 following the consummation of the company's
exchange offer. Those noteholders will automatically receive the benefits of the
unilateral amendment, including:





-- Security based on a pro-rata amount of collateral appraised at

approximately $181 million, including approximately $96 million in

spare parts and $85 million of spare engines;

-- Coupon increased from 4.25% to 11.25% over the remaining note term; and

-- An additional put right in three years or on August 1, 2011.





The trustee under the indenture is supportive of the company's decision to
provide noteholders additional flexibility and improved terms beyond the August
1, 2008 put date. These amendments have been reviewed and substantially approved
in form and substance by the trustee. The company intends to issue a press
release and file the amended documents with the Securities and Exchange
Commission via a Form 8-K, along with the third-party appraisal of the
collateral, tomorrow, July 30, 2008.

ExpressJet Background

ExpressJet Holdings operates several divisions designed to leverage the
management experience, efficiencies and economies of scale present in its
subsidiaries, including ExpressJet Airlines, Inc. and ExpressJet Services, LLC.
ExpressJet Airlines serves 166 destinations in North America and the Caribbean
with approximately 1,450 departures per day. Operations include capacity
purchase and pro-rate agreements for mainline carriers; providing clients
customized 50-seat charter options; and ExpressJet branded flying, providing
non-stop service to markets concentrated in the West, Midwest and Southeast
regions of the United States. ExpressJet Services is the North American partner
to thre e major European original equipment manufacturers and provides composite,
sheet metal, interior and thrust reverser repairs throughout five facilities in
the United States. For more information, visit http://www.expressjet.com.

Important Information Regarding Tender Offer

This report is not a recommendation, an offer to purchase or a solicitation of
an offer to sell any securities of the company. The company has commenced such
tender offer as required under the indenture and filed with the SEC a tender
offer statement on Schedule TO-I and related exhibits, including an offer to
exchange, letter of transmittal and related documents. The company has also
mailed such materials to the noteholders. Noteholders are urged to carefully
read these documents, as they contain important information, including the
various terms of, and conditions to, the tender offer. Noteholders can obtain a
copy of the tender offer statement on Schedule TO-I, offer to exchange, letter
of transmittal and related documents free of charge from the SEC's EDGAR
database, which can be accessed through the SEC's Internet site
(http://www.sec.gov).

Forward Looking Statements

Some of the statements in this document are forward-looking statements that
involve a number of risks and uncertainties. Many factors could affect actual
results, and variances from current expectations regarding these factors could
cause actual results to differ materially from those expressed in the
forward-looking statements. Some of the known risks that could significantly
impact revenues, operating results and capacity include, but are not limited to
the company's continued dependence on Continental for the majority of its
revenue; the company's new operations are less profitable than historical
results; record-breaking fuel prices; competitive responses to the company's
branded entry into new markets; certain tax matters; reliance on technology and
third-party service! provide rs; flight disruptions as a result of operational
matters; regulatory developments and costs, including the costs and other
effects of enhanced security measures and other possible regulatory
requirements; competition and industry conditions. Additional information
concerning risk factors that could affect the company's actual results are
described in its filings with the Securities and Exchange Commission, including
its 2007 annual report on Form 10-K. The events described in the forward-looking
statements might not occur, or might occur to a materially different extent than
described herein. The company undertakes no duty to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.

SOURCE ExpressJet Holdings



URL: http://www.expressjet.com

www.prnewswire.com


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