Atlas Air Worldwide completes financing arrangements for remaining six Boeing 747-8F Freighter deliveries

Atlas Air Worldwide Holdings, Inc. (New York) today announced that its Atlas Air, Inc. (New York) unit 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 Boeing 747-8F 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.

The 747-8 Freighter, 5.6 meters (18.3 ft) longer than the benchmark 747-400F, is the largest long-haul, heavy freighter in the market with 16 percent more revenue cargo volume compared with the 747-400F. The additional 120 cubic meters (4,245 cubic feet) of volume afforded by the longer fuselage offers space for four additional main-deck pallets and three additional lower-hold pallets. For maximum speed and efficiency, cargo on the 747-8F can be loaded and unloaded using both the nose and side doors.

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.

Copyright Photo: Bernhard Ross.