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Insurance industry

American Trans Air Completes $30 Million Preferred Equity Sale

Strategic Insights

— 1 min read

American Trans Air, Inc. (ATA) has finalized the sale of $30 million in preferred convertible equity to International Lease Finance Corporation (ILFC), a wholly-owned subsidiary of American International Group, Inc. (AIG). As part of a previously announced financing package, the sale will support ATA's purchase of new aircraft, including 37 Boeing 737-800s and 10 Boeing 757-300s. This investment is a significant milestone in ATA's expansion plans and demonstrates the company's commitment to upgrading its fleet.

Key Takeaways:

  • ATA has completed the sale of $30 million in preferred convertible equity to ILFC, a subsidiary of AIG.
  • The preferred equity is convertible to Amtran common stock at $15.67 and is repayable in September 2015 if not converted.
  • ILFC has also committed to providing ATA with long-term operating leases on 14 new 737-800 aircraft.
  • The sale is part of a financing package that will support ATA's purchase of 47 new aircraft.
  • ILFC is the international market leader in aircraft leasing and remarketing, owning a portfolio valued at over $19 billion.
  • AIG is the leading U.S.-based international insurance and financial services organization, with operations in over 130 countries.
  • ATA operates a fleet of 56 jet aircraft and employs over 7,000 people.

Statistics:

  • The sale of preferred convertible equity to ILFC is valued at $30 million.
  • ILFC owns a portfolio valued at over $19 billion, consisting of over 450 jet aircraft.
  • ATA has ordered 47 new aircraft, including 37 Boeing 737-800s and 10 Boeing 757-300s.
  • The new 737-800 aircraft will replace ATA's fleet of 24 Boeing 727-200s.
  • ILFC is committed to providing ATA with long-term operating leases on 14 new 737-800 aircraft.

Sources:

  • PRNewswire, "American Trans Air, Inc. Completes Sale of $30 Million of Preferred Convertible Equity to International Lease Finance Corporation," September 21.
  • ATA website, "About ATA," accessible at www.ata.com.
  • Amtran, Inc. website, "Company Overview," accessible at www.amtran.com.

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