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Atlas Air clears aircraft debt

Atlas Air clears aircraft debt

   Atlas Air Worldwide Holdings Inc., parent company of Atlas Air and Polar Air Cargo, will pay off about $141 million of credit obligations for 16 of its 747 freighter aircraft and terminate an existing revolving credit facility.

   AAWW said it plans to repay the outstanding sum under two credit facilities administered by Deutsche Bank Trust Co. Americas, the Aircraft Credit Facility and the AFL III Credit Facility. As a result of the early repayment, AAWW expects to incur a one-time, non-cash pretax expense of about $13 million in the third quarter.

   A credit facility with Wachovia Bank National Association, which has outstanding letters of credit worth about $400,000, will be ended today with no early termination penalties or fees, Atlas Air said.

   “We are taking advantage of our healthy cash position, which totaled $309 million at the end of the first quarter, to pay down and terminate certain credit facilities that inhibit our strategic and operating flexibility,” said William J. Flynn, president and chief executive officer.

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