ATSG Amends Bank Credit Facility
WILMINGTON, Ohio--(BUSINESS WIRE)--Nov 6, 2019--
Air Transport Services Group, Inc. (NASDAQ:ATSG) announced today that it has extended its senior secured credit facility until November 30, 2024, expanded the facility’s revolver portion, consolidated and lowered its term loans, and reduced pricing to immediately lower interest cost. Other changes under the amendment provide the Company greater access and flexibility in future borrowings.
Specific changes included:
Quint Turner, Chief Financial Officer of ATSG, said lender response to the latest amendment was excellent, and reflects the banks’ recognition of ATSG’s strong credit profile and its outlook for sustained, growing cash flow generation.
“We appreciate the continued strong support from our banks. The favorable changes included in this amendment will lower ATSG’s interest cost on its secured facility by approximately $4.7 million per year at current borrowing levels, and provide the Company with greater flexibility to adjust the mix and scale of its debt capital structure in the future.”
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.
Except for historical information contained herein, the matters discussed in this release contain forward-looking statements that involve risks and uncertainties. A number of important factors could cause Air Transport Services Group’s (ATSG’s) actual results to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, our ability to remain in compliance with our senior secured credit facility; and other factors that are contained from time to time in ATSG’s filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers should carefully review this release and should not place undue reliance on ATSG’s forward-looking statements. These forward-looking statements were based on information, plans and estimates as of the date of this release. ATSG undertakes no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.
View source version on businesswire.com:https://www.businesswire.com/news/home/20191106005942/en/
CONTACT: Quint Turner, ATSG Inc. Chief Financial Officer
KEYWORD: OHIO UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: OTHER TRANSPORT FINANCE AIR TRANSPORT BANKING PROFESSIONAL SERVICES LOGISTICS/SUPPLY CHAIN MANAGEMENT SUPPLY CHAIN MANAGEMENT RETAIL OTHER PROFESSIONAL SERVICES
SOURCE: Air Transport Services Group, Inc.
Copyright Business Wire 2019.
PUB: 11/06/2019 04:05 PM/DISC: 11/06/2019 04:05 PM