Air Transport lifts revolver to $1 billion, replaces grid with SOFR

Chicago, Oct. 20 – Air Transport Services Group Inc. amended and restated its credit agreement on Wednesday with Truist Bank as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The amendments increased the revolving commitments by $200 million, to $1 billion.

The commitment fees were reduced by 5 basis points, and interest will now be based on SOFR instead of Libor.

Under the amendment, the commitment fee starts at 12.5 bps and goes up to 25 bps.

Interest on SOFR loans is based on a grid between 100 bps and 187.5 bps. There is a 10 bps SOFR adjustment.

The new maturity date is Oct. 19, 2027.

The collateral to outstanding loan ratio has been reduced to 1.15x from 1.25x.

The co-syndication agents are JPMorgan Chase Bank, NA, PNC Capital Markets LLC and Regions Bank.

Bank of America, NA is the documentation agent.

Truist Securities, Inc., JPMorgan Chase Bank, NA, PNC Capital Markets LLC, Regions Capital Markets and BofA Securities, Inc. are the joint lead arrangers and joint bookrunners.

Additionally, it was announced that the company’s Irish subsidiary, Airborne Global Leasing Ltd., plans for a $100 million revolving loan with Truist Bank as administrative agent.

Air Transport is a Wilmington, Ohio-based provider of aircraft leasing and air cargo transportation and related services to domestic and foreign air carriers and other companies that outsource their air cargo lift requirements.

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