Air transport services group, inc. enter into an amendment of its second amended and restated credit agreement with suntrust bank

On november 4, 2019, air transport services group, inc. (atsg) entered into an amendment (the “third amendment”) of its second amended and restated credit agreement (the “credit agreement”), dated november 9, 2018, with suntrust bank, as administrative agent, and the other financial institutions from time to time a party thereto. the third amendment: extends the maturity date of the term loan and revolving credit facility for six months to november 30, 2024; reduces the interest pricing, by lowering rate spreads above the one-month libor for borrowings, ranging from 37.5 basis points at atsg’s current secured net leverage ratio to 25.0 basis points at each of the other steps on the pricing grid; reduces the pricing applied to unused revolver capacity by 5 basis points; increases the aggregate amount of the revolving credit facility by $105 million, to $750 million; consolidates two term loans totaling $707 million at september 30, 2019, into a single term loan of $635 million; reduces the required term loan principal amortization over its remaining duration; adds a new leverage-based feature providing access to additional revolver or term loan capacity through the accordion option, subject to lenders’ consent; increases the maximum permitted total (secured and unsecured) leverage from 4.0x to 4.25x trailing 12-month ebitda, as defined under the credit agreement; and increases the additional permitted indebtedness outside of the secured facility from $500 million to $750 million, excluding the existing convertible notes.
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