Amtran Seeks Financing As Citi, Salomon Fly Away

  • 30 Sep 2001
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Amtran, parent company of American Trans Air, is evaluating financing options, including another credit facility to back a privatization plan. Citicorp and Salomon Smith Barney terminated their commitment letter relating to a proposed $175 million secured credit facility last Friday night, citing the material adverse change clause as a get-out, explained Kim Wick, manager of investor relations. Wick said, however, the privatization is on hold for the moment and has not yet been scrapped. Financing and the shareholder vote are the only hurdles left, she added.

Wick could not comment on whether bids would be sent out to other lenders, but she said another credit facility has not been ruled out. One banker expressed disbelief that the transaction could still go ahead. "I cannot see anyone in the short-term committing to an airline deal," he said. Amtran would have to pay a lot of money for a bank to lead a deal, he noted, adding, the company is also unlikely to get a high-yield transaction done in this market.

Last Wednesday, Citi and Salomon sent a letter to Amtran requesting information regarding the business condition, operations and properties of the Indianapolis-based company (LMW, 9/24).

  • 30 Sep 2001

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 BNP Paribas 13,295 25 18.56
2 Bank of America Merrill Lynch (BAML) 8,059 25 11.25
3 Lloyds Bank 6,979 21 9.74
4 Citi 6,256 16 8.73
5 JP Morgan 5,220 8 7.29

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1 Citi 104,581.71 299 10.92%
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3 JPMorgan 80,990.39 237 8.46%
4 Wells Fargo Securities 77,934.65 225 8.14%
5 Credit Suisse 63,570.21 165 6.64%