Air Transport Services Group, Inc.Announces Increase and Pricing of Additional $ 200 Million Senior Bond Offering Due 2028

WILMINGTON, Ohio – (COMMERCIAL THREAD) – Air Transport Services Group, Inc. (NASDAQ: ATSG) today announced the increase and pricing of the complementary private offering previously announced by its indirect wholly-owned subsidiary, Cargo Aircraft Management, Inc. (” CAM ”), $ 150 million in aggregate principal amount of 4.750% Senior Notes due 2028 (the“ New Notes ”). The principal amount of the new notes increased from $ 150 million to $ 200 million. The New Notes will be issued at an offering price of 102.750% (resulting in an equivalent return of 3.96%) of their face value (plus interest accrued from February 1, 2021).

The new notes are being offered as additional notes under an existing indenture, dated January 28, 2020, pursuant to which CAM previously issued $ 500 million in aggregate principal amount of its 4.750% senior notes due. in 2028 (the “existing tickets”). The new Notes will be fully fungible with the existing Notes, treated as a single class for all purposes under the Existing Notes Act with the same terms as the existing Notes (other than the date of issue and the price of ‘issue) and issued under the same CUSIP numbers as the existing notes (except that new notes issued in accordance with Regulation S (“Regulation S”) under the Securities Act of 1933, as amended ( the Securities Act), will be traded separately under a different CUSIP number until 40 days after the date of issue of the new notes, but thereafter any holder may transfer their new notes issued in accordance with Regulation S in the same CUSIP number as the existing tickets issued in accordance with Regulation S).

CAM intends to use the proceeds of the New Note offering, after deducting the initial buyers’ discount and accrued interest on the new Notes from February 1, 2021 to the settlement date, to permanently reduce revolving credit commitments under the ATSG and the Amended and Restated Third Credit Agreement.

The New Notes have only been offered to persons reasonably suspected of being Qualified Institutional Purchasers in the United States under Rule 144A of the Securities Act, and outside the United States to persons other than persons. United States in accordance with Regulation S. The offering of the New Notes has not been registered under the Securities Act or any state securities laws, and the New Notes may not be offered or sold to United States in the absence of an applicable registration or exemption from the registration requirements of the Securities Act and applicable state securities laws.

The sale of the new tickets is subject to customary closing conditions and is expected to close on April 13, 2021.

This press release is not an offer to sell or the solicitation of an offer to buy the New Notes and will not constitute an offer, solicitation or sale in any jurisdiction in which such an offer, solicitation or sale would be. illegal.

About Airline Services Group, Inc.

ATSG is a leading provider of aircraft rental and air cargo transportation and related services to domestic and foreign air carriers and other companies that outsource their air cargo transportation needs. ATSG, through its rental and airline subsidiaries, is the world’s largest owner and operator of converted Boeing 767 cargo aircraft. Through its major subsidiaries, including three airlines with separate and distinct FAA Part 121 Air Operator Certificates, ATSG provides aircraft rental, air cargo transportation, ACMI and charter services. passengers, aircraft maintenance services and airport ground services. ATSG subsidiaries include ABX Air, Inc .; Global Airborne Solutions, Inc .; Airborne Maintenance and Engineering Services, Inc., including its subsidiary, Pemco World Air Services, Inc .; International Air Transport, Inc .; Cargo Aircraft Management, Inc .; and Omni Air International, LLC. For more information, please visit

Forward-looking statements

With the exception of historical information contained in this document, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties. A number of important factors could cause ATSG’s actual results to differ materially from those indicated by these forward-looking statements. These factors are described in documents filed by the ATSG with the United States Securities and Exchange Commission, including its annual report on Form 10-K and its quarterly reports on Form 10-Q. Readers should read this press release carefully and should not place undue reliance on ATSG’s forward-looking statements. These forward-looking statements were based on information, plans and estimates as of the date of this press release. ATSG assumes no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.

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