Air Transport Services Group (ATSG) is extending and expanding its credit facilities for the acquisition and conversion of 13 B767-300s.
The Group’s committments have been extended by one-year, through May 2024 of its secured credit facility, and amended its agreement with a consortium of banks, led by SunTrust, increasing the revolving credit portion of the facility by USD 100 million, to USD 645 million.
Quint Turner, chief financial officer of ATSG, says the banks’ response to the latest amendment was excellent, with interest in the group exceeding the USD 100 million ATSG requested.
“This additional revolver capacity, along with the growing cash flows generated by ATSG’s businesses, will support our program to meet the strong domestic and international demand for our aircraft,” he says.
“In particular, we will invest the majority of our USD 475 million capital expenditure budget in 2019 to acquire thirteen Boeing 767-300s. We expect to convert and add nine 767s to our freighter leasing portfolio during the year, with a tenth aircraft remaining in passenger configuration and operated by our airline subsidiary Omni Air International, acquired in November 2018.
“Cargo Aircraft Management, our aircraft leasing subsidiary, continues to benefit from strong demand from customers who desire the efficiency of the Boeing 767 in their cargo air network operations, where expanding shipment volumes have been driven by the secular shift to e-commerce,” Turner adds.