Secures Over $860 Million For Remaining Freighter Deliveries

Atlas Air has entered into an $865 million term-loan facility with Apple Bank for Savings, guaranteed by the Export-Import Bank of the United States, to finance the company’s six remaining B747-8F aircraft deliveries. The aircraft are expected to be placed in Atlas Air’s international ACMI (aircraft, crew, maintenance and insurance) service.

When drawn, the facility will consist of six separate 12-year term loans. The six aircraft covered by the facility are expected to be delivered to the company between mid-2012 and mid-2013. Borrowings under the facility will initially accrue interest at a variable rate. The facility provides for an option to refinance the loans through the issuance of Ex-Im Bank-guaranteed bonds in the capital markets. BNP Paribas Securities Corp. and KGS Alpha Capital Markets have agreed to act as joint lead book runners and managers should the company exercise its option to refinance the loans.

“We are very pleased to have closed on this financing facility for the remainder of our 747-8F deliveries,” said William J. Flynn, President and Chief Executive Officer of Atlas Air Worldwide. “Terms and rates on the facility are even more attractive than the very favorable terms on our first three 747-8F deliveries. The financing reflects the strong working relationship we have developed with our lender group and with Ex-Im Bank, each of whom has been quite receptive to the company and the 747-8F asset. We are the only outsource operator to offer the new 747-8F aircraft, and we look forward to placing them into service with our customers.”

As previously announced, the first five aircraft in Atlas Air’s order for nine 747-8Fs, including three for British Airways World Cargo that were delivered in the fourth quarter of 2011 and two for Panalpina that are expected to be delivered in mid-2012, have been placed under long-term ACMI contracts.

FMI: www.atlasair.com