Air Transport Services Group (ATSG) has completed the previously announced acquisition of Omni Air International, a passenger ACMI and charter services provider, along with related entities, for USD 845 million.
Joe Hete, president and chief executive officer of ATSG, said: “Completing this Omni acquisition is a milestone achievement for ATSG. It increases both our revenue and our adjusted EBITDA expectations for 2019 by more than 40 per cent, brings increased revenue diversification, and adds both passenger service and Boeing 777 capabilities to our range of services. We are eager to work with Omni’s management to pursue the many opportunities our combined assets and talented associates can address.”
In contemplation of the Omni purchase, ATSG today agreed to amend its senior credit facility with a consortium of banks led by SunTrust Bank. The new amended agreement has an aggregate principal amount of USD 1.28 billion, consisting of the continuing secured revolving credit facility of USD 545 million, a continuing secured term loan with a current balance of USD 60 million, and a new USD 675 million secured term loan. The credit facility is secured by substantially all of ATSG’s Boeing 777, 767 and 757 aircraft.
Omni Air’s fleet, which includes seven B767-300ER, three B767-200ER and three B777-200ER passenger aircraft, enhances ATSG’s position as the world’s largest source of dedicated B767 cargo aircraft to selected air-express and other operators, it said.
Eleven of the thirteen aircraft Omni Air operates are owned, with one B767-200ER and one B767-300ER leased. In total, the ATSG companies will have a combined fleet of more than 90 aircraft in service by year-end.