Air Transport Services Group Prices Offering of USD 225m of Convertible Senior Notes

Air Transport Services Group, Inc. (NASDAQ:ATSG) has priced USD 225 million in aggregate principal amount of 1.125% convertible senior notes due 2024 in a private offering, the company said.

In connection with the offering, the company has granted the initial purchasers a 30-day option to purchase up to an additional USD 33.75 million in aggregate principal amount of notes.

The notes will bear interest at a rate of 1.125% per year, payable semi-annually in arrears on April 15 and October 15 of each year, beginning April 15, 2018. The notes will mature on October 15, 2024, unless repurchased or converted in accordance with their terms prior to such date.

Prior to April 15, 2024, the notes will be convertible only upon satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date.

The company intends to use a portion of the net proceeds from this offering to pay the cost of the convertible note hedge transactions (after such cost is partially offset by the proceeds to the company from the warrant transactions), which net cost will be approximately USD 15.3 million (or approximately USD 17.6 million if the company enters into additional convertible note hedge transactions as a result of the initial purchasers fully exercising their option to purchase additional notes).

ATSG is a 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. Through its principal subsidiaries, including two airlines with separate and distinct US 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. including its division, PEMCO World Air Services, Inc.