Amtran, parent company of
American Trans Air, is
evaluating financing options, including another credit facility to
back a privatization plan.
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,
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,