Atlas looks to raise funds through note sale

17 / 05 / 2017

Atlas Air Worldwide Holdings is looking to raise $250m through the sale of convertible senior notes to repay borrowings and support future growth.

In a stock exchange announcement, the company said the bond sale would see it offer senior notes due on June 1 2024 in an underwritten public offering.

The company said: “Atlas Air Worldwide currently intends to use the net proceeds of the offering to repay higher cost revolving credit facility borrowings; enhance business and financial flexibility; support long-term growth; fund the cost of convertible note hedge transactions (after such cost is partially offset by proceeds to the company from the sale of warrants); and for general corporate purposes.”

Any underwriters of the initial $250m will be given the option to purchase an additional $37.5m of the notes within a 13 day period to cover over-allotments.

The notes will be convertible into cash, shares in the company’s common stock or a combination of the both.

The interest rate and terms of the notes, including the conversion rate of the notes, will be determined by negotiations among the company and the underwriters.

During the first quarter, the company saw income from continuing operations, net of taxes, total $8.3m compared with $7.7m in the year-ago quarter, operating revenues increased by 13.6% year on year to $475.4m, while it registered a net loss of $725m against a $471m profit for the period last year.