Bain Capital Credit to Invest in Atlas Air Worldwide’s Titan Aircraft Leasing Business
December 18 2019 - 10:36AM
Titan Aviation Holdings, Inc., a subsidiary of Atlas Air Worldwide
Holdings, Inc. (Nasdaq: AAWW), and Bain Capital Credit, LP today
announced that they have entered into an agreement to form a joint
venture to develop a diversified freighter aircraft leasing
portfolio with an anticipated value of approximately $1 billion.
The long-term joint venture aims to capitalize on demand for cargo
aircraft, underpinned by robust e-commerce and express market
growth.
Under the joint venture, Bain and Titan have
committed to provide $360 million and $40 million of equity
capital, respectively, which may be supplemented with additional
commitments over time, to acquire aircraft over the next several
years. Titan will also provide aircraft- and lease-management
services to the venture.
Since its inception in 2009, Titan has grown to
become the third largest freighter lessor globally by fleet value
with over 30 aircraft and book value of over $1.5 billion.
“We are delighted to team up with Bain,” said
Titan President and Chief Executive Officer Michael T. Steen. “Both
Bain and Titan share the same vision and investment strategy.
Together, we are extremely well-positioned for further
opportunities in the growing freighter space.”
“We have long admired Atlas and Titan as a
best-in-class industry leader and are excited to join forces for a
constructive and lasting partnership,” said Matt Evans, a Director
at Bain Capital Credit. “We look forward to supporting the
company’s next phase of growth as it continues to leverage its deep
relationships within the global airfreight community.”
“We continue to leverage the scale and scope of
our operations, and our leadership in global aviation outsourcing,”
said Atlas Air Worldwide Chairman and Chief Executive Officer
William J. Flynn. “We are executing the right strategies, including
opportunities like this to grow our Titan dry-leasing
business.
“We were impressed with Bain’s knowledge about
our industry and its ability to join with us as we look to achieve
our mutual goals. We appreciate Bain’s confidence in our long-term
growth strategy, and we value its desire to partner with us.”
BNP Paribas acted as exclusive financial advisor and placement
agent to Titan in the transaction, and Pillsbury Winthrop Shaw
Pittman LLP acted as its legal advisor. Kirkland & Ellis LLP
acted as Bain’s legal advisor in the transaction.
About Atlas Air
Worldwide:
Atlas Air Worldwide is a leading global provider
of outsourced aircraft and aviation operating services. It is the
parent company of Atlas Air, Inc., Southern Air Holdings, Inc. and
Titan Aviation Holdings, Inc., and is the majority shareholder of
Polar Air Cargo Worldwide, Inc. Our companies operate the world’s
largest fleet of 747 freighter aircraft and provide customers the
broadest array of Boeing 747, 777, 767, 757 and 737 aircraft for
domestic, regional and international cargo and passenger
operations.
Atlas Air Worldwide’s press releases, SEC
filings and other information may be accessed through the company’s
home page, www.atlasairworldwide.com.
About Bain Capital Credit
Bain Capital Credit (www.baincapitalcredit.com)
is a leading global credit specialist with approximately $41
billion in assets under management. Bain Capital Credit invests up
and down the capital structure and across the spectrum of credit
strategies, including leveraged loans, high-yield bonds, distressed
debt, private lending, structured products, nonperforming loans and
equities. Our team of more than 200 professionals creates value
through rigorous, independent analysis of thousands of corporate
issuers around the world. In addition to credit, Bain Capital
invests across asset classes including private equity, public
equity and venture capital, and leverages the firm’s shared
platform to capture opportunities in strategic areas of focus. Bain
Capital Credit's dedicated Private Credit Group focuses on
providing complete financing solutions to businesses with EBITDA
between $10 million and $100 million located in North America,
Europe and Asia Pacific. Our dedicated global team affords us the
ability to diligence the most complex situations and provide
private capital to those companies.
Contacts: |
Dan Loh
(Investors) – (914) 701-8200Debbie Coffey (Media) – (914)
701-8951 |
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