Air Transport talks $350 million six-year convertible notes to yield 3.75% to 4%, up 42.5% to 45%

By Abigail W. Adams

Portland, Me., Aug. 9 – Air Transport Services Group Inc. plans to price $350 million of six-year convertible notes after the market close on Wednesday with price talk for a coupon of 3.75% to 4% and an initial conversion premium of 42.5% to 45%, according to a market source.

Truist Securities (lead left) and Oppenheimer& Co. Inc. are bookrunners for the Rule 144A offering, which carries a greenshoe of $50 million.

The notes are non-callable until Aug. 15, 2026 and then subject to a 130% hurdle.

They are putable upon a fundamental change.

The company will repurchase $200 million in principal of its 1.125% convertible notes due 2024 in privately negotiated transactions.

Proceeds will be used to repurchase common stock from the initial purchasers of the notes in privately negotiated transactions, repurchase shares from Amazon under an existing agreement and fund the repurchase of its 1.125% notes.

Remaining proceeds will be used to repay a portion of borrowings from the company’s revolving credit facility and for general corporate purposes.

Air Transport Services Group is a Wilmington, Ohio-based aviation holding company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.