WILMINGTON, Ohio--(EON: Enhanced Online News)--Air Transport Services Group, Inc. (NASDAQ:ATSG) announced today that it has obtained lender commitments for a one-year extension through May 2022 of its secured credit facility, and an expansion of its revolver portion.
The amendment to ATSG’s agreements with a consortium of banks, led by SunTrust, increases the revolving credit portion of the facility by $120 million, to $545 million. Additionally, the amendment preserves ATSG’s access to a $100 million accordion feature, subject to lender consent.
Quint Turner, Chief Financial Officer of ATSG, said, "We appreciate the continued support of our bank consortium as we invest to meet strong domestic and international demand for our expanding fleet of midsize freighter aircraft. The additional credit, along with growing cash flows generated by ATSG’s businesses, provides us with ample resources to meet capital commitments we anticipate in the near term."
The outstanding balance under the revolver was $415 million as of March 31, 2017. The facility also includes an amortizing term loan with an outstanding balance of $82.5 million.
The variable interest rate structure on the revolver remains unchanged. Rates are affected by LIBOR, plus a credit spread that adjusts quarterly based on the actual leverage ratio up to 3.5 times EBITDA. The revolver interest rate is currently 2.99 percent.
ATSG is a leading provider of aircraft leasing and air cargo transportation and related services to domestic and foreign air carriers and other companies that outsource their air cargo lift requirements. ATSG, through its leasing and airline subsidiaries, is the world's largest owner and operator of converted Boeing 767 freighter aircraft. Through its principal subsidiaries, including two airlines with separate and distinct U.S. FAA Part 121 Air Carrier certificates, ATSG provides aircraft leasing, air cargo lift, aircraft maintenance services and airport ground services. ATSG's subsidiaries include ABX Air, Inc.; Airborne Global Solutions, Inc.; Air Transport International, Inc.; Cargo Aircraft Management, Inc.; and Airborne Maintenance and Engineering Services, Inc. For more information, please see www.atsginc.com.