ABX Air Signs Credit Facility with Bank One, as Agent, and PNC Bank.Business Editors WILMINGTON, Ohio--(BUSINESS WIRE)--April 5, 2004 ABX Air (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :ABXA) today announced it has signed a $35 million, three-year syndicated credit facility with Bank One, NA as agent, and PNC PNC Purdue University North Central (Westville, Indiana) PnC Point 'n Click PNC Police National Computer PNC People's National Congress (Guyana) PNC People's National Congress Bank as a participant. The loan agreement has an accordion feature to increase the credit facility to $45 million in the event ABX Air needs additional borrowing capacity in the future. The facility provides for the issuance of letters of credit on ABX ABX Antibiotics ABX Airborne Express ABX Abstracting ABX Albury, New South Wales, Australia - Albury (Airport Code) ABX Automatic Branch Exchange ABx Non-Antibiotics ABX Asset Backed Securities Index ABX Acoustic Bass Extension Air's behalf, as well as additional liquidity to pursue opportunities outside of its contracts with Airborne/DHL. Also, under certain liquidity requirements, ABX Air will be allowed to repurchase ABXA stock. ABX Air does not currently have a stock buyback Stock buyback A corporation's purchase of its own outstanding stock, usually in order to raise the company's earnings per share. stock buyback See buyback. program, and has made no plans to repurchase ABXA stock. "We have been very impressed with Bank One and PNC Bank's ability to quickly understand our business," stated Joe Hete, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "We view our relationships with Bank One and PNC Bank as strategic partnerships that will enable ABX Air to build and strengthen its business." ABX Air has two service contracts with Airborne/DHL that support Airborne's priority air and Airborne and DHL's deferred ground products. Both contracts generally provide compensation to ABX on a cost-plus basis, with a base mark-up of 1.75% and a potential to earn incremental mark-ups depending on the attainment of contractually specified cost and service goals. Certain costs covered under these agreements, such as jet fuel expense, are reimbursable only, without mark-up. Interest expense on debt to Bank One for indebtedness to provide service under the Airborne/DHL contracts is reimbursable to ABX Air at cost, plus mark-up. ABX Air is a cargo airline with a fleet of 115 aircraft that operates out of Wilmington, Ohio and eleven hubs throughout the United States. In addition to providing airlift capacity and staffing to Airborne, an indirect wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of DHL DHL abbr. 1. Doctor of Hebrew Letters 2. Doctor of Hebrew Literature Worldwide Express B.V. (DHL), ABX Air provides charter and maintenance services to a diverse group of customers. With over 7,000 employees, ABX Air is the largest employer in a several county area in southwestern Ohio. |
|
Printer friendly
Cite/link
Email
Feedback
Reader Opinion