Air Transport Services Group, Inc. (NASDAQ: ATSG) has announced the acquisition of passenger ACMI and charter services provider Omni Air International LLC (Omni Air), along with related entities, for USD 845 million, the company said.
In contemplation of the Omni purchase, ATSG today agreed to amend its senior credit facility with a consortium of banks led by SunTrust Bank, previously dated May 31, 2016. The new amended agreement has an aggregate principal amount of USD 1.28 billion, consisting of the continuing secured revolving credit facility of USD 545 million, a continuing secured term loan with a current balance of USD 60 million, and a new USD 675 million secured term loan. The maturity date of these loans is May 30, 2023.
The amended facility includes an accordion feature that would allow the total amount of borrowings under the facility to increase by up to USD 400 million. The total amount of additional debt ATSG and its subsidiaries may incur outside of the amended facility increases from USD 300 million to USD 500 million.
The combination with Omni Air is anticipated to add over USD 430 million in annualized revenues to ATSG.
Omni Air is a leading provider of passenger airlift services to the US Department of Defense (DoD) via the Civil Reserve Air Fleet (CRAF) program, and a worldwide provider of full-service passenger charter and ACMI services.
ATSG is a leading provider of aircraft leasing and air cargo transportation and related services to domestic and foreign air carriers and other companies and government entities that outsource their air transport requirements. ATSG, through its leasing and airline subsidiaries, is the world´s largest owner and operator of converted Boeing 767 freighter aircraft.