Air Transport Services Group, has completed the previously announced acquisition of Omni Air International (Omni Air), a passenger ACMI and charter services provider, along with related entities, for US$845 million, subject to customary adjustments.
In contemplation of the Omni purchase, ATSG has agreed to amend its senior credit facility with a consortium of banks led by SunTrust Bank, previously dated May 31, 2016. The new amended agreement has an aggregate principal amount of US$1.28 billion, consisting of the continuing secured revolving credit facility of US$545 million, a continuing secured term loan with a current balance of US$60 million, and a new US$675 million secured term loan. The maturity date of these loans is May 30, 2023.
The amended facility includes an accordion feature that would allow the total amount of borrowings under the facility to increase by up to US$400 million, assuming certain conditions and with bank consent. The total amount of additional debt ATSG and its subsidiaries may incur outside of the amended facility increases from US$300 million to US$500 million. Credit terms are consistent with the existing facility, including with respect to provisions limiting ATSG’s ability to declare or pay dividends or repurchase shares, and requires ATSG to maintain specified financial ratios and minimum collateral values, and meet other financial condition tests. The facility is secured by substantially all of ATSG’s Boeing 777, 767 and 757 aircraft.
