ATSG’s Bank Credit Facility Expands to Support Fleet Growth
May 28 2019 - 8:00AM
Business Wire
Air Transport Services Group, Inc. (NASDAQ:ATSG) announced today
that it has obtained lender commitments for a one-year extension
through May 2024 of its secured credit facility, and an expansion
of the facility’s revolver portion.
The amendment to ATSG’s agreement with a consortium of banks,
led by SunTrust, increases the revolving credit portion of the
facility by $100 million, to $645 million. ATSG is exercising its
access to additional credit, with lender consent, through an
accordion feature of the facility. The exercise reduces the
additional credit available under the accordion feature to $300
million from $400 million.
Quint Turner, Chief Financial Officer of ATSG, said the banks’
response to the latest amendment was excellent, with interest in
the group exceeding the $100 million ATSG requested.
"This additional revolver capacity, along with the growing cash
flows generated by ATSG’s businesses, will support our program to
meet the strong domestic and international demand for our
aircraft,” he said. “In particular, we will invest the majority of
our $475 million capital expenditure budget in 2019 to acquire
thirteen Boeing 767-300s. We expect to convert and add nine 767s to
our freighter leasing portfolio during the year, with a tenth
aircraft remaining in passenger configuration and operated by our
airline subsidiary Omni Air International, acquired in November
2018. Cargo Aircraft Management, our aircraft leasing subsidiary,
continues to benefit from strong demand from customers who desire
the efficiency of the Boeing 767 in their cargo air network
operations, where expanding shipment volumes have been driven by
the secular shift to e-commerce."
The outstanding revolver balance at March 31, 2019, was $488
million. The senior credit facility also includes two term loans
with a combined balance at March 31 of $723 million.
The variable interest rate structure on the revolver facility
remains unchanged. Rates are affected by LIBOR, plus a credit
spread that adjusts quarterly based on the ratio of ATSG's total
debt to its trailing annual EBITDA. The revolver interest rate is
currently 4.74 percent.
About ATSG
ATSG is a leading provider of aircraft leasing and air cargo
transportation and related services to domestic and foreign air
carriers and other companies that outsource their air cargo lift
requirements. ATSG, through its leasing and airline subsidiaries,
is the world's largest owner and operator of converted Boeing 767
freighter aircraft. Through its principal subsidiaries, including
three airlines with separate and distinct U.S. FAA Part 121 Air
Carrier certificates, ATSG provides aircraft leasing, air cargo
lift, passenger ACMI and charter services, aircraft maintenance
services and airport ground services. ATSG's subsidiaries include
ABX Air, Inc.; Airborne Global Solutions, Inc.; Airborne
Maintenance and Engineering Services, Inc., including its
subsidiary, Pemco World Air Services, Inc.; Air Transport
International, Inc.; Cargo Aircraft Management, Inc.; and Omni Air
International, LLC. For more information, please see
www.atsginc.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20190528005142/en/
Quint O. Turner, ATSG Inc. Chief Financial
Officer937-366-2303
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