From the financial wires today. More iron on the way.
PURCHASE, N.Y.--(BUSINESS WIRE)--Feb. 1, 2012-- 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.