Air Transport unit signs $100 million secured revolver

By William Gullotti

Buffalo, N.Y., March 3 – Air Transport Services Group Inc.’s Irish subsidiary, Airborne Global Leasing Ltd., entered a new $100 million secured revolving loan credit facility with Truist Bank as administrative agent on March 1, according to an 8-K filing with the Securities and Exchange Commission.

The revolver, which matures Oct. 19, 2027, includes a $7.5 million letter-of-credit subfacility.

Borrowings will bear interest at SOFR plus a margin ranging from 100 basis points to 187.5 bps. There is also a facility fee that ranges from 12.5 bps to 25 bps. The margin and fee are determined by the company’s secured leverage ratio.

Consistent with the terms of the parent company’s domestic credit agreement, the borrower is required to maintain a fixed-charge coverage ratio of no less than 1.25 to 1.00, a secured leverage ratio not to exceed 3.5 to 1.0, a total leverage ratio not to exceed 4.25 to 1.00 and a ratio of aggregate qualified aircraft collateral value to outstanding loans of no less than 1.15 to 1.0. Each ratio will be tested quarterly.

The maximum leverage ratios, both secured and total, may be increased by 0.5 for four fiscal quarters following a permitted acquisition.

Truist Securities, Inc., JPMorgan Chase Bank, NA, PNC Capital Markets LLC, Regions Capital Markets and BofA Securities, Inc. are the joint lead managers and joint bookrunners.

JPMorgan and PNC are also acting as co-syndication agents with Regions Bank. Bank of America, NA is the documentation agent.

Air Transport is a Wilmington, Ohio-based provider of aircraft leasing and air cargo transportation and related services to domestic and foreign air carriers and other companies that outsource their air cargo lift requirements.

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