By Paul A. Harris
Portland, Ore., April 7 – Air Transport Services Group, Inc. priced an upsized $200 million add-on to the Cargo Aircraft Management, Inc. 4¾% senior notes to Feb. 1, 2028 (Ba3/BB-) at 102.75 with a 3.96% yield to worst in a Wednesday drive-by, according to a syndicate source.
The deal size increased from $150 million.
The issue price came at the rich end of the 102.5 to 102.75 price talk.
Truist was the left bookrunner.
The issuer, which is a wholly owned subsidiary of Air Transport Service Group, plans to use the proceeds to refinance its existing revolver and term loan A.
Air Transport Services Group is a Wilmington, Ohio-based aircraft leasing and air cargo transportation services provider and the largest supplier of passenger charter service to the U.S. Department of Defense.
| Issuer: | Cargo Aircraft Management, Inc.
|
| Amount: | $200 million, increased from $150 million
|
| Maturity: | Feb. 1, 2028
|
| Security description: | Add-on to 4¾% senior notes due Feb. 1, 2028
|
| Left bookrunner: | Truist
|
| Joint bookrunners: | BofA Securities, Inc., J.P. Morgan Securities LLC, PNC Capital Markets LLC and Regions Securities Inc.
|
| Coupon: | 4¾%
|
| Price: | 102.75
|
| Yield to wort: | 3.96%
|
| First call: | Feb. 1, 2023 at 102.375
|
| Trade date: | April 7
|
| Settlement date: | April 13
|
| Ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 102.5 to 102.75
|
| Marketing: | Drive-by
|
| Original issue: | $500 million priced in January 2020
|
| Fungibility: | Rule 144A add-on notes to become immediately fungible with original notes, Regulation S add-on notes to become fungible after 40 days
|
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