Atlas Air Worldwide Completes Financing Arrangements for Remaining Six Boeing 747-8 Freighter Deliveries
February 01 2012 - 4:57PM
Business Wire
Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW), a leading
global provider of outsourced aircraft and aviation operating
services, today announced that its Atlas Air, Inc. unit has entered
into an $865 million term-loan facility with Apple Bank for
Savings, guaranteed by the Export-Import Bank of the United States,
to finance the company’s six remaining B747-8F aircraft deliveries.
The aircraft are expected to be placed in Atlas Air’s international
ACMI (aircraft, crew, maintenance and insurance) service.
When drawn, the facility will consist of six separate 12-year
term loans. The six aircraft covered by the facility are expected
to be delivered to the company between mid-2012 and mid-2013.
Borrowings under the facility will initially accrue interest at
a variable rate. The facility provides for an option to refinance
the loans through the issuance of Ex-Im Bank-guaranteed bonds in
the capital markets. BNP Paribas Securities Corp. and KGS Alpha
Capital Markets have agreed to act as joint lead book runners and
managers should the company exercise its option to refinance the
loans.
“We are very pleased to have closed on this financing facility
for the remainder of our 747-8F deliveries,” said William J. Flynn,
President and Chief Executive Officer of Atlas Air Worldwide.
“Terms and rates on the facility are even more attractive than the
very favorable terms on our first three 747-8F deliveries. The
financing reflects the strong working relationship we have
developed with our lender group and with Ex-Im Bank, each of whom
has been quite receptive to the company and the 747-8F asset.”
Mr. Flynn added: “We are the only outsource operator to offer
the new 747-8F aircraft, and we look forward to placing them into
service with our customers.”
The 747-8 Freighter, 5.6 meters (18.3 ft) longer than the
benchmark 747-400F, is the largest long-haul, heavy freighter in
the market with 16 percent more revenue cargo volume compared with
the 747-400F. The additional 120 cubic meters (4,245 cubic feet) of
volume afforded by the longer fuselage offers space for four
additional main-deck pallets and three additional lower-hold
pallets. For maximum speed and efficiency, cargo on the 747-8F can
be loaded and unloaded using both the nose and side doors.
As previously announced, the first five aircraft in Atlas Air’s
order for nine 747-8Fs, including three for British Airways World
Cargo that were delivered in the fourth quarter of 2011 and two for
Panalpina that are expected to be delivered in mid-2012, have been
placed under long-term ACMI contracts.
SkyWorks Capital, LLC acted as advisor to the company in
connection with arranging the 2012 facility.
About Atlas Air Worldwide:
Atlas Air Worldwide (AAWW) is the parent company of Atlas Air,
Inc. (Atlas Air) and Titan Aviation Leasing (Titan), and is the
majority shareholder of Polar Air Cargo Worldwide, Inc. (Polar).
AAWW also maintains a 49% interest in Global Supply Systems Limited
(GSS). Through Atlas and Polar, AAWW operates the world’s largest
fleet of Boeing 747 freighter aircraft.
Atlas Air, Titan and Polar offer a range of outsourced aircraft
and aviation operating services that include ACMI service – in
which customers receive an aircraft, crew, maintenance and
insurance on a long-term basis; CMI service, for customers that
provide their own aircraft; express network and scheduled air cargo
service; military cargo and passenger charters; commercial cargo
and passenger charters; and dry leasing of aircraft and
engines.
AAWW’s press releases, SEC filings and other information may be
accessed through the Company’s home page, www.atlasair.com.
This release contains “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995
that reflect AAWW’s current views with respect to certain current
and future events and financial performance. Such forward-looking
statements are and will be, as the case may be, subject to many
risks, uncertainties and factors relating to the operations and
business environments of AAWW and its subsidiaries (collectively,
the “companies”) that may cause the actual results of the companies
to be materially different from any future results, express or
implied, in such forward-looking statements.
Factors that could cause actual results to differ materially
from these forward-looking statements include, but are not limited
to, the following: the ability of the companies to operate pursuant
to the terms of their financing facilities; the ability of the
companies to obtain and maintain normal terms with vendors and
service providers; the companies’ ability to maintain contracts
that are critical to their operations; the ability of the companies
to fund and execute their business plan; the ability of the
companies to attract, motivate and/or retain key executives and
associates; the ability of the companies to attract and retain
customers; the continued availability of our wide-body aircraft;
demand for cargo services in the markets in which the companies
operate; economic conditions; the effects of any hostilities or act
of war (in the Middle East or elsewhere) or any terrorist attack;
labor costs and relations; financing costs; the cost and
availability of war risk insurance; our ability to maintain
adequate internal controls over financial reporting; aviation fuel
costs; security-related costs; competitive pressures on pricing
(especially from lower-cost competitors); volatility in the
international currency markets; weather conditions; government
legislation and regulation; consumer perceptions of the companies’
products and services; anticipated and future litigation; and other
risks and uncertainties set forth from time to time in AAWW’s
reports to the United States Securities and Exchange
Commission.
For additional information, we refer you to the risk factors set
forth under the heading “Risk Factors” in the Annual Report on Form
10-K filed by AAWW with the Securities and Exchange Commission on
February 14, 2011. Other factors and assumptions not identified
above may also affect the forward-looking statements, and these
other factors and assumptions may also cause actual results to
differ materially from those discussed.
AAWW assumes no obligation to update such statements contained
in this release to reflect actual results, changes in assumptions
or changes in other factors affecting such estimates other than as
required by law.
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