Air Transport Services Group, a leading provider of aircraft leasing and air cargo transportation and related services to domestic and foreign air carriers, has obtained a commitment for a new secured $325 million credit facility with a consortium of banks led by SunTrust, and provided an outlook for its anticipated results for the quarter ended March 31, 2011. The new five-year credit facility will replace the current facility, also led by SunTrust, which is scheduled to expire at the end of 2012. The new facility will include a term loan of $150 million and a $175 million revolver with an accordion for up to an additional $50 million. The new facility will initially be priced at the 90-day LIBOR rate plus 2 percentage points, 25 basis points lower than the comparable rate under the current agreement. By the end of June 2011, the Company intends to execute fixed price interest rate hedges on at least 50% of the $150 million term loan. Amortization of up-front fees associated with the new facility will be $1.2 million lower on an annual basis than under the current agreement. The credit facility will be secured by certain designated aircraft to provide 150% collateral coverage of the outstanding debt.
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Tamar Jorssen
Vice President Sales & Marketing
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Richmond, BC V6X 3M1
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[email protected]
Mailing Address
AviTrader Publications Corp.
Suite 305, South Tower
5811 Cooney Road
Richmond, BC V6X 3M1
Canada