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Published on 5/13/2011 in the Prospect News Bank Loan Daily.

Air Transport enters $175 million revolver, $150 million term loan

By Jennifer Chiou

New York, May 13 - Air Transport Services Group, Inc. entered into a $325 million credit facility on Monday with SunTrust Bank as administrative agent, Regions Bank and JPMorgan Chase Bank, NA as syndication agents and Bank of America, NA as documentation agent, according to an 8-K filing with the Securities and Exchange Commission.

The Wilmington, Ohio, air cargo transportation company said that the facility consists of a $175 million secured revolving credit facility and a $150 million secured term loan.

Proceeds were used to pay off the company's existing credit facilities and will be used for working capital, capital expenditures and general corporate purposes. The old facilities were dated as of Dec. 31, 2007 and consisted of a $75 million secured revolver and a $270 million secured term loan. Wholly owned subsidiaries ABX Air, Inc. and Cargo Holdings International, Inc. were co-borrowers.

The new five-year facility has a $50 million accordion feature.

Air Transport added in the filing that the term loan will amortize in quarterly payments beginning on June 30, 2012 in an amount equal to 5% of the original principal amount for the first year and 10% thereafter.

The loans are secured by substantially all of the Boeing 767 and 757 aircraft of Cargo Aircraft Management, Inc.


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