Atlas Air Worldwide to sell $250 million of seven-year convertibles

By Stephanie N. Rotondo

Seattle, May 16 – Atlas Air Worldwide Holdings Inc. is offering $250 million of convertible senior notes due 2024, the company said in a press release on Tuesday.

Price talk was not available as of press time.

Morgan Stanley & Co. LLC, BNP Paribas Securities Corp. and Citigroup Global Markets Inc. are the joint bookrunners.

The deal will include a $37.5 million 13-day over-allotment option.

Conversions will be settled in cash, common stock or a combination, at the company’s option. The notes will be contingently convertible prior to Sept, 1, 2023 and convertible at any time after that date.

The notes are non-callable.

In connection with the deal, Atlas will enter into one or more privately negotiated convertible note hedge transactions as well as separate privately negotiated warrant transactions with certain financial institutions.

Proceeds will be used to repay higher-cost revolving credit facility borrowings, to enhance business and financial flexibility, to support long-term growth, to fund the cost of hedging transactions and for general corporate purposes.

Atlas Air is a Purchase, N.Y.-based provider of outsourced aircraft and aviation operating services.

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