Southern Air to launch $300 million credit facility on Wednesday

By Sara Rosenberg and Paul A. Harris

New York, Sept. 21 - Southern Air Inc. is scheduled to hold a bank meeting on Wednesday to launch its proposed $300 million credit facility, according to a market source.

CIBC is the lead bank on the deal.

The facility consists of a $50 million revolver and a $250 million term loan, with both tranches talked at Libor plus 375 basis points, the source said.

The term loan will have an original issue discount that is still to be determined.

Proceeds will be used to help fund the buyout of the company by Oak Hill Capital Partners.

Subsequent to the closing of the transaction, Southern Air will be combined with Cargo 360, Inc., an existing Oak Hill portfolio company. The combined company will be named Southern Air Holdings, Inc.

Southern Air is a Norwalk, Conn., provider of air cargo services to airlines.

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