By Paul A. Harris
Portland, Ore., Jan. 16 – Air Transport Services Group, Inc. priced an upsized $500 million issue of eight-year senior notes (Ba3/B+) at par to yield 4¾% on Thursday, according to market sources.
The issue size increased from $400 million.
The yield printed at the tight end of yield talk in the 4 7/8% and through initial guidance in the 5¼% area.
SunTrust Robinson Humphrey Inc. was the left bookrunner. Joint bookrunners were BofA Securities Inc., J.P. Morgan Securities LLC, PNC Capital Markets LLC and Regions Securities LLC.
The Wilmington, Ohio-based company plans to use the proceeds to pay down its revolver.
The issuing entity is Cargo Aircraft Management, Inc., a wholly owned subsidiary of Air Transport Services, an aircraft leasing and air cargo transportation services provider and the largest provider of passenger charter service to the U.S. Department of Defense.
| Issuer: | Cargo Aircraft Management, Inc.
|
| Amount: | $500 million, increased from $400 million
|
| Maturity: | Feb. 1, 2028
|
| Securities: | Senior notes
|
| Left bookrunner: | SunTrust Robinson Humphrey Inc.
|
| Joint bookrunners: | BofA Securities Inc., J.P. Morgan Securities LLC, PNC Capital Markets LLC and Regions Securities LLC
|
| Co-managers: | BBVA Securities Inc., Goldman Sachs & Co. LLC, CIBC World Markets Corp. and Loop Capital Markets LLC
|
| Coupon: | 4¾%
|
| Price: | Par
|
| Yield: | 4¾%
|
| First call: | Feb. 1, 2023 at 102.375
|
| Trade date: | Jan. 16
|
| Settlement date: | Jan. 28
|
| Ratings: | Moody's: Ba3
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 4 7/8% area
|
| Marketing: | Roadshow
|
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