Atlas Air Worldwide has announced the pricing of $260.0 million aggregate principal amount of its 1.875% convertible senior notes due June 1, 2024, in an underwritten public offering. The size of the offering was increased from the previously announced aggregate principal amount of $250.0 million.
The company has also granted the underwriters an option to purchase up to an additional $39.0 million aggregate principal amount of the notes solely to cover over-allotments.
The offering is expected to close on May 23, 2017, subject to the satisfaction of customary closing conditions.
The company estimates that the net proceeds of this offering will be approximately $253.1 million (or $291.2 million if the underwriters’ over-allotment option is exercised in full), after deducting the underwriters’ discounts and commissions and estimated offering expenses.
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) intended to reduce potential dilution to the company’s common stock; and for general corporate purposes.Date: May 18, 2017