ExpressJet (XJT)

[TikiGal]

ExpressJet Announces Execution of Unilateral Amendment of 4.25% Convertible Notes Due 2023
Wednesday July 30, 5:39 pm ET


HOUSTON, July 30 /PRNewswire-FirstCall/ -- ExpressJet Holdings, Inc. (NYSE: XJT - News) announced today it has executed a supplemental indenture to unilaterally amend the indenture governing its 4.25% convertible notes due 2023. The company announced on July 22 that it had determined to enter into this amendment in order to provide improved terms and additional flexibility for the noteholders, and both the trustee under the indenture and the company executed the amendment earlier today.
(Logo: http://www.newscom.com/cgi-bin/prnh/20080221/NYFNSN01LOGO)

The benefits of the amendment will apply to any noteholder holding the notes on August 2, 2008 following the consummation of the exchange offer that is currently being conducted as required by the indenture. Under the current indenture, noteholders may require the company to exchange their notes on August 1, 2008 and the company has begun the required exchange offer with the intention to satisfy the obligation wholly in shares of common stock. Those noteholders who retain their notes 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.


Now that the company and trustee have executed the supplemental indenture and the related security agreement, the company has filed these documents with the Securities and Exchange Commission via a Form 8-K, which is available on the SEC's Internet site (http://www.sec.gov).

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 three 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).