ABX Air plans $345 million credit facility with purchase of Cargo Holdings

By Sara Rosenberg

New York, Nov. 5 - ABX Air Inc. is planning on getting a $345 million senior secured credit facility to help fund its acquisition of Cargo Holdings International, Inc., according to a news release.

SunTrust and Regions Bank are the lead banks on the deal.

In addition to helping fund the acquisition, proceeds from the credit facility will be used to refinance Cargo Holdings' existing $100 million credit facility.

The acquisition is subject to customary regulatory approvals and is expected to close before the end of the year.

By the closing of this transaction, ABX Air will create a new holding company structure, with ABX Air Inc. becoming a wholly owned subsidiary of ABX Holdings Inc. Cargo Holdings will become a wholly owned subsidiary of ABX Holdings Inc.

The final equity purchase price of the transaction is anticipated to be $260 million, which will include an adjustment based upon the net assets on Cargo Holdings' balance sheet at closing

ABX Air is a Wilmington, Ohio, air cargo services provider. Cargo Holdings is an Orlando, Fla., provider of outsourced air cargo services.

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