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ATA completes exchange for 10½%, 9 5/8% notes
New York, Jan. 30 - ATA Holdings Corp. (Ca/CC) said it completed its exchange offer to issue new notes and cash for its existing 10½% senior notes due 2004 and 9 5/8% senior notes due 2005.
The company said $155.31 million principal amount of the 10½% notes were tendered and $104.995 million of the 9 5/8% notes were tendered.
Following the exchange, $19.69 million of the 10½% notes and $20.005 million of the 9 5/8% notes remain outstanding.
In exchange for the old 10½% notes, ATA issued $163.064 million of new senior notes due 2009 and paid $15.885 million in cash.
In exchange for the old 9 5/8% notes, ATA issued $110.233 million of new senior notes due 2010 and paid $6.525 million in cash.
Both cash figures include accrued interest.
The exchange offer expired on Jan. 29 after all conditions were met.
Completion of the exchange follows multiple extensions and changes to the terms.
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.
ATA was also soliciting consents to amend the indenture under which the notes were issued.
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