Atlas Air Worldwide Holdings, Inc. : Atlas Air Worldwide Completes Financing Arrangements for Remaining Six Boeing 747-8 Freighter Deliveries
02/01/2012 | 05:00pm
Term-Loan Facility with Apple Bank for Savings Guaranteed by Ex-Im
Bank
Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW), a leading global
provider of outsourced aircraft and aviation operating services, today
announced that its Atlas Air, Inc. unit has entered into an $865 million
term-loan facility with Apple Bank for Savings, guaranteed by the
Export-Import Bank of the United States, to finance the company's six
remaining B747-8F aircraft deliveries. The aircraft are expected to be
placed in Atlas Air's international ACMI (aircraft, crew, maintenance
and insurance) service.
When drawn, the facility will consist of six separate 12-year term
loans. The six aircraft covered by the facility are expected to be
delivered to the company between mid-2012 and mid-2013.
Borrowings under the facility will initially accrue interest at a
variable rate. The facility provides for an option to refinance the
loans through the issuance of Ex-Im Bank-guaranteed bonds in the capital
markets. BNP Paribas Securities Corp. and KGS Alpha Capital Markets have
agreed to act as joint lead book runners and managers should the company
exercise its option to refinance the loans.
"We are very pleased to have closed on this financing facility for the
remainder of our 747-8F deliveries," said William J. Flynn, President
and Chief Executive Officer of Atlas Air Worldwide. "Terms and rates on
the facility are even more attractive than the very favorable terms on
our first three 747-8F deliveries. The financing reflects the strong
working relationship we have developed with our lender group and with
Ex-Im Bank, each of whom has been quite receptive to the company and the
747-8F asset."
Mr. Flynn added: "We are the only outsource operator to offer the new
747-8F aircraft, and we look forward to placing them into service with
our customers."
The 747-8 Freighter, 5.6 meters (18.3 ft) longer than the benchmark
747-400F, is the largest long-haul, heavy freighter in the market with
16 percent more revenue cargo volume compared with the 747-400F. The
additional 120 cubic meters (4,245 cubic feet) of volume afforded by the
longer fuselage offers space for four additional main-deck pallets and
three additional lower-hold pallets. For maximum speed and efficiency,
cargo on the 747-8F can be loaded and unloaded using both the nose and
side doors.
As previously announced, the first five aircraft in Atlas Air's order
for nine 747-8Fs, including three for British Airways World Cargo that
were delivered in the fourth quarter of 2011 and two for Panalpina that
are expected to be delivered in mid-2012, have been placed under
long-term ACMI contracts.
SkyWorks Capital, LLC acted as advisor to the company in connection with
arranging the 2012 facility.
About Atlas Air Worldwide:
Atlas Air Worldwide (AAWW) is the parent company of Atlas Air, Inc.
(Atlas Air) and Titan Aviation Leasing (Titan), and is the majority
shareholder of Polar Air Cargo Worldwide, Inc. (Polar). AAWW also
maintains a 49% interest in Global Supply Systems Limited (GSS). Through
Atlas and Polar, AAWW operates the world's largest fleet of Boeing 747
freighter aircraft.
Atlas Air, Titan and Polar offer a range of outsourced aircraft and
aviation operating services that include ACMI service - in which
customers receive an aircraft, crew, maintenance and insurance on a
long-term basis; CMI service, for customers that provide their own
aircraft; express network and scheduled air cargo service; military
cargo and passenger charters; commercial cargo and passenger charters;
and dry leasing of aircraft and engines.
AAWW's press releases, SEC filings and other information may be accessed
through the Company's home page, www.atlasair.com.
This release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995 that reflect AAWW's
current views with respect to certain current and future events and
financial performance. Such forward-looking statements are and will be,
as the case may be, subject to many risks, uncertainties and factors
relating to the operations and business environments of AAWW and its
subsidiaries (collectively, the "companies") that may cause the actual
results of the companies to be materially different from any future
results, express or implied, in such forward-looking statements.
Factors that could cause actual results to differ materially from these
forward-looking statements include, but are not limited to, the
following: the ability of the companies to operate pursuant to the terms
of their financing facilities; the ability of the companies to obtain
and maintain normal terms with vendors and service providers; the
companies' ability to maintain contracts that are critical to their
operations; the ability of the companies to fund and execute their
business plan; the ability of the companies to attract, motivate and/or
retain key executives and associates; the ability of the companies to
attract and retain customers; the continued availability of our
wide-body aircraft; demand for cargo services in the markets in which
the companies operate; economic conditions; the effects of any
hostilities or act of war (in the Middle East or elsewhere) or any
terrorist attack; labor costs and relations; financing costs; the cost
and availability of war risk insurance; our ability to maintain adequate
internal controls over financial reporting; aviation fuel costs;
security-related costs; competitive pressures on pricing (especially
from lower-cost competitors); volatility in the international currency
markets; weather conditions; government legislation and regulation;
consumer perceptions of the companies' products and services;
anticipated and future litigation; and other risks and uncertainties set
forth from time to time in AAWW's reports to the United States
Securities and Exchange Commission.
For additional information, we refer you to the risk factors set forth
under the heading "Risk Factors" in the Annual Report on Form 10-K filed
by AAWW with the Securities and Exchange Commission on February 14,
2011. Other factors and assumptions not identified above may also affect
the forward-looking statements, and these other factors and assumptions
may also cause actual results to differ materially from those discussed.
AAWW assumes no obligation to update such statements contained in this
release to reflect actual results, changes in assumptions or changes in
other factors affecting such estimates other than as required by law.
For Atlas Air Worldwide Holdings, Inc.
Investors:
Dan Loh,
914-701-8200
or
Media:
Bonnie Rodney, 914-701-8580
© Business Wire 2012
