ATSG - Air Transport Services Group Inc. Announces Pricing of $500 Million of Senior Notes due 2028

Air Transport Services Group, Inc. (NASDAQ: ATSG) announced today that its wholly owned subsidiary, Cargo Aircraft Management, Inc. (“CAM”), has priced its offering of $500 million in aggregate principal amount of 4.750% senior notes due 2028 (the “Senior Notes”). This represents a $100 million increase in the original offering amount of the Senior Notes. The Senior Notes will mature on February 1, 2028.

The Senior Notes will be offered only to qualified institutional buyers in the United States under Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States to persons other than U.S. persons in compliance with Regulation S under the Securities Act. The offering of the Senior Notes has not been registered under the Securities Act or under any state securities laws, and the Senior 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 of applicable state securities laws.

The Senior Notes will be senior unsecured obligations of CAM. They will be guaranteed, jointly and severally, on a senior unsecured basis by ATSG and by each domestic, wholly owned direct and indirect U.S. subsidiary of ATSG other than CAM. The sale of the Senior Notes is subject to customary closing conditions and is expected to close on January 28, 2020.

CAM intends to use the proceeds from the offering of the Senior Notes to fund the repayment of certain revolving loans outstanding under CAM and ATSG’s Second Amended and Restated Credit Agreement and to pay fees and expenses in connection with such repayment and the offering of the Senior Notes.

This press release is neither an offer to sell nor the solicitation of an offer to buy any of the Senior Notes and shall not constitute an offer, solicitation or sale in any jurisdiction in which such an offer, solicitation or sale would be unlawful.

About Air Transport Services Group, Inc.

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

Forward-Looking Statements

Except for historical information contained herein, the matters discussed in this 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 such forward-looking statements. Such factors are described in ATSG’s filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers should carefully review this release 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 release. ATSG undertakes no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.

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