ATA extends exchange, reaches minimum tender condition

New York, Jan. 26 - ATA Holdings Corp. (Ca/CC) said it has again extend its previously announced exchange offer for its 10½% senior notes due 2004 and 9 5/8% senior notes due 2005 and added that it has now reached the minimum tender condition.

The offers will now expire at 5 p.m. ET on Jan. 29, pushed back from 5 p.m. ET on Jan. 26.

As of Jan. 26, holders had tendered $152.81 million principal amount of the 10½% notes and $104.995 million of the 9 5/8% notes for a total of $257.805 million. That figure is 85.9% of the amount outstanding, more than the minimum tender condition of 85% or $255 million.

Some of the notes were tendered under a lock-up agreement, ATA noted.

The exchange is also subject to the completion of definitive amendments to several of ATA's aircraft operating leases. ATA said it believes that these definitive amendments are complete and only need to be executed, which it expects to execute by the expiry date of the exchange.

ATA also needs the consent of the Air Transportation Stabilization Board as a condition of the exchange. The company said it believes it has reached an agreement in principle with the ATSB under which the ATSB will provide its consent to the exchange.

As a result, ATA said it does not expect to extend the exchange again and expects to complete it on Jan. 30.

Under terms of the exchange as amended on Jan. 9, ATA is offering $1,050 principal amount of new senior notes due 2009 plus $50 in cash for each $1,000 principal amount of the 10½% notes and $1,050 principal amount of new senior notes due 2010 plus $50 in cash for each $1,000 principal amount of the 9 5/8% notes.

The 2009 notes will pay interest at 13%, increasing to 14% on Aug. 1, 2006 until their maturity on Feb. 1, 2009. ATA is required to redeem 5% of the principal amount of the notes tendered on Aug. 1, 2005.

The 2010 notes will pay interest at 12 1/8%, increasing to 13 1/8% on June 15, 2006 until their maturity on June 15, 2010. ATA is required to redeem 5% of the principal amount of the notes tendered on June 15, 2005.

In both cases, the 5% redemption will be equivalent to 4.76% of the principal amount of the 2009 and 2010 notes outstanding.

The response is up from $11.51 million or 6.6% of the 10½% notes and $29.55 million or 23.6% of the 9 5/8% notes on Jan. 9 before the offer was amended. ATA also had a lock-up agreement with holders of $77.975 million or 44.6% of the 10½% notes and $68.76 million or 55.0% of the 9 5/8% notes.

ATA is also soliciting consents to amend the indenture under which the notes were issued.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.