Air Transport Services Group, Inc.Announces Complementary Senior Note Offer Proposal


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WILMINGTON, Ohio – (BUSINESS WIRE) – Air Transport Services Group, Inc. (NASDAQ: ATSG) announced today that its indirect wholly-owned subsidiary, Cargo Aircraft Management, Inc. (“CAM”), has launched a complementary offering, subject to market and other customary conditions, of $ 150 million principal amount of its 4.750% Senior Notes due 2028 (the “New Notes”) in an unregistered offer in accordance with Rule 144A and Regulation S of the Securities Act of 1933, as amended (the “Securities Act”).

The new notes will be issued as additional notes under an existing indenture dated January 28, 2020, under which CAM previously issued $ 500 million in aggregate principal amount of its 4.750% senior notes due. in 2028 (the “existing tickets”). The new tickets will be fully fungible with the existing tickets, treated as a single category for all purposes under the Act governing the existing tickets with the same conditions as those of the existing tickets (other than the date of issue and the price of ‘issue) and issued under the same CUSIP numbers as the existing Notes (except that new Notes issued in accordance with Regulation S (“Regulation S”) under the Securities Act will be traded separately under a number CUSIP is different up to 40 days after the date of issue of the new notes, but thereafter, any holder may transfer their new securities issued under Regulation S under the same CUSIP number as existing securities issued under Regulation S ).

The offering of the New Notes has not been registered under the Securities Act or any state securities law, and the New Notes may not be offered or sold in the United States absent ‘registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.

CAM intends to use the proceeds of the new note offering to fund the repayment of certain revolving loans outstanding under the ATSG and CAM secured bank credit facility and to pay fees and expenses. related to the offer of the new tickets.

This press release is not an offer to sell or the solicitation of an offer to buy the New Notes and will not constitute an offer, solicitation or sale in any jurisdiction in which such an offer, solicitation or sale would be. illegal.

About Airline Services Group, Inc.

ATSG is a leading provider of aircraft rental and air cargo transportation and related services to domestic and foreign air carriers and other companies that outsource their air cargo transportation needs. ATSG, through its rental and airline subsidiaries, is the world’s largest owner and operator of converted Boeing 767 cargo aircraft. Through its major subsidiaries, including three airlines with separate and distinct FAA Part 121 Air Operator Certificates, ATSG provides aircraft rental, air cargo transportation, ACMI and charter services. passengers, aircraft maintenance services and airport ground services. ATSG subsidiaries include ABX Air, Inc .; Global Airborne Solutions, Inc .; Airborne Maintenance and Engineering Services, Inc., including its subsidiary, Pemco World Air Services, Inc .; International Air Transport, Inc .; Cargo Aircraft Management, Inc .; and Omni Air International, LLC. For more information, please see www.atsginc.com.

Forward-looking statements

With the exception of historical information contained in this document, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties. A number of important factors could cause ATSG’s actual results to differ materially from those indicated by these forward-looking statements. These factors are described in documents filed by the ATSG with the United States Securities and Exchange Commission, including its annual report on Form 10-K and quarterly reports on Form 10-Q. Readers should read this press release carefully and should not place undue reliance on ATSG’s forward-looking statements. These forward-looking statements were based on information, plans and estimates as of the date of this press release. ATSG makes no commitment to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.

Airline Services Group, Inc.

Quint Turner, Chief Financial Officer, (937) 366-2303

Source: Airline Services Group, Inc.

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