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WILMINGTON, Ohio - Air Transport Services Group, Inc. (NASDAQ:ATSG), a leading aircraft leasing and air transport service provider with a market capitalization of $1.47 billion, has announced a Fundamental Change and Make-Whole Fundamental Change event following its acquisition by Stonepeak. According to InvestingPro data, ATSG has demonstrated strong market performance, with a remarkable 72% return over the past year. The event triggers an option for holders of its 3.875% convertible senior notes due 2029 to require the company to repurchase their notes.
Holders of the notes, which are due on May 9, 2025, can opt for the repurchase at 100% of the principal amount plus accrued and unpaid interest from February 15, 2025, to the repurchase date. The repurchase price will be $1,009.04 per $1,000 principal amount of notes surrendered, and the option must be exercised by 5:00 p.m. (New York City time) on May 8, 2025.
Alternatively, note holders may convert their notes into cash at a rate determined by the Base Conversion Rate and additional shares provided during the Make-Whole Fundamental Change Conversion Period, which ends at the specified time on May 8, 2025. The conversion rate will then revert to the Base Conversion Rate.
The company has outlined the procedures for exercising these options in the Notice provided to the note holders. U.S. Bank Trust Company, National Association, serves as the paying and conversion agent for this transaction.
This announcement comes after Stonepeak's acquisition of ATSG, marking a significant change as defined under the terms of the indenture governing the notes. The company emphasizes that this press release serves merely for informational purposes and is not an offer to buy or a solicitation of an offer to sell the notes. InvestingPro analysis shows ATSG currently trades near its 52-week high of $22.49, with an EBITDA of $518.7 million in the last twelve months.
ATSG is known for its comprehensive air transportation solutions, including cargo and passenger services, and maintains a diverse fleet of aircraft. The acquisition by Stonepeak, an investment firm specializing in infrastructure and real assets, is expected to further solidify ATSG's market position. With analysts forecasting EPS of $1.04 for FY2025 and multiple positive indicators identified by InvestingPro, including expected net income growth and high shareholder yield, investors can access detailed analysis and 8 additional exclusive ProTips through the comprehensive Pro Research Report.
This information is based on a press release statement from Air Transport Services Group, Inc.
In other recent news, Air Transport Services Group has reported mixed fourth-quarter results, exceeding earnings expectations but falling short on revenue projections. The company posted an adjusted earnings per share of $0.40, surpassing the analyst consensus of $0.29. However, revenue for the quarter was $517 million, slightly below the expected $524.6 million. Despite the revenue miss, the company saw a significant increase in adjusted EBITDA, rising to $162.2 million from $129.9 million in the same quarter the previous year. Free cash flow also improved notably to $34.7 million, compared to a negative $65.5 million a year ago. Additionally, Air Transport Services Group announced plans to redeem its $700 million in outstanding 4.750% Senior Notes due in 2028, contingent upon the completion of a merger with Stonepeak Nile MergerCo Inc. The company is on track to finalize this merger in the first half of 2025. These developments highlight key financial and strategic moves by Air Transport Services Group in recent times.
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