ATA Holdings again extends exchange offers

New York, Jan. 5 - ATA Holdings Corp. (Ca/CC) said it had again extended its previously announced exchange offers and related consent solicitation for its outstanding 10½% senior notes due 2004 and outstanding 9 5/8% senior notes due 2005.

The exchange offers, which were to have expired at 5 p.m. ET Jan. 2, were extended to 5 p.m. ET Jan. 9, subject to possible further extension. The company also extended the consent deadline - by which holders had to tender their notes and deliver consents in order to receive the consent payment - to Jan. 9, in line with the exchange offer expiration and also subject to possible further extension.

As announced on Dec. 19, ATA said it has been in discussions with a group of holders of the existing notes and believes it has now reached an agreement in principle. Once a definitive agreement is achieved it will announce a revised offer.

The other terms of the exchange offers remain unchanged.

As of Dec. 12, $11.51 million principal amount of 10½% notes and $29.55 million principal amount of the 9 5/8% notes had been tendered and not withdrawn - unchanged from the investor participation levels for both exchange offers on Dec. 5, when the offers had last been extended previously.

As previously announced, ATA Holdings, the Indianapolis-based parent of ATA Airlines Inc., said on Aug. 29 that it had launched exchange offers and consent solicitations for its $175 million of outstanding 10½% notes and $125 million of outstanding 9 5/8% notes.

It initially set a consent deadline of 5 p.m. ET Sept. 12 and said the exchanges would expire at 5 p.m. ET Sept. 26 (both deadlines were subsequently extended several times).

The company said it was offering $940 principal amount of new 11% senior notes due 2009 and $60 cash for each $1,000 principal amount of the 10½% notes tendered and $960 principal amount of new 10 1/8% senior notes due 2010 and $40 cash for each $1,000 principal amount of 9 5/8% notes tendered.

Both cash amounts include a $30 consent payment, payable only to those holders delivering their consents by the consent deadline.

The company said the exchange would be conditional on at least 85% by principal amount of each series of the existing notes being tendered and the company receiving the consent of the Air Transportation Stabilization Board for its government guaranteed term loan.

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