Atlas Air amends credit facility

New York, June 21 - Atlas Air, Inc. said it amended its credit facility, adjusting covenants, adding extra aircraft as security and prepaying part of the principal.

The Purchase, N.Y. freight carrier said in a filing with the Securities and Exchange Commission that the amendment gives it "additional certainty" for its liquidity levels for the remainder of 2002.

In line with the existing requirements of its Aircraft Credit Facility, Atlas Air prepaid $17.5 million of principal in order to maintain the required loan-to-value ratio. The minimum liquidity amounts required by the Aircraft Credit Facility and its Atlas Freighter Leasing III facility were adjusted to reflect the prepayment.

For the third and fourth quarters of 2002, the maximum leverage ratio was increased and the minimum interest coverage ratio decreased.

In addition a loan-to-value ratio test was added for both facilities at Dec. 31, 2002.

Atlas Air added three previously unencumbered 747-200 aircraft to the security of the Atlas Freighter Leasing III facility.

Atlas agreed to "additional compensation" for the banks.

The company said it expects to discuss covenant levels for 2003 with the banks in the fourth quarter.

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