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North American Newsletter 18 January

North American Newsletter 18 January

ATSG and Air Canada Agree to Sale, Conversion and Leaseback of Two Boeing 767 Aircraft

Air Transport Services Group announced that its Cargo Aircraft Management, Inc. subsidiary has agreed to purchase two Boeing 767-300ER aircraft from Air Canada of Montreal, convert them from passenger to freighter configuration, and lease them back to Air Canada. This is the first sale-leaseback agreement between ATSG and Air Canada. The first aircraft will be inducted for conversion in March 2021. Both are expected to be redelivered to Air Canada by the end of 2021.

Aviation Capital Group Announces Closing of $750 Million of Senior Unsecured Notes

Aviation Capital Group announced the closing of its sale of $750 million aggregate principal amount of 1.950% senior unsecured notes due 2026 ACG intends to use the net proceeds from the Notes for general corporate purposes, including repayment of outstanding indebtedness and the purchase of commercial aircraft.

Cargojet Announces C$350 Million Bought Deal Equity Offering

Cargojet announce that it has entered into an agreement with Scotiabank, CIBC Capital Markets, RBC Capital Markets, J.P. Morgan Securities Canada Inc., Morgan Stanley Canada Limited and BMO Capital Markets acting as co-leads and joint bookrunners, on behalf of a syndicate of underwriters pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 1,642,000 common voting shares and/or variable voting shares and, together with the Common Voting of Cargojet at a price of C$213.25 per Share for aggregate gross proceeds to Cargojet of C$350 Million.

Global Crossing Airlines Announces Financing to Complete Certification

Global Crossing Airlines announced that it intends to undertake a non-brokered private placement to raise up to a maximum of $5.0 million. The Offering consists of units issued at US$0.62 per unit. Each Unit consists of one share of common stock and one warrant Each Warrant entitles the holder thereof to purchase an additional Share for US$1.00 (approx. Cdn$1.27) for a period of 27 months after closing. The airline intends to use the net proceeds of the Offering to substantially complete the FAA certification process, substantially meet the US DOT economic fitness test, make aircraft deposit or lease payments, and for general corporate and working capital.

SkyWest to Receive $233 million through a Payroll Support Program Extension Under 2021 Appropriations Act

SkyWest announced that its wholly-owned subsidiary SkyWest Airlines has entered into a Payroll Support Program Extension Agreement with the U.S. Treasury Department to receive a total of approximately $233 million under the Consolidated Appropriations Act of 2021. SkyWest received half of the $233 million in mid-January and expects to receive the second half in February 2021. In consideration for the funding, approximately $40 million will be in the form of a ten-year, low interest unsecured term loan, and SkyWest will issue to the U.S. Treasury Department warrants to purchase approximately 98,815 shares of SkyWest common stock at a strike price of $40.41.

WestJet announces retirement of Jeff Martin, Chief Operating Officer

WestJet today announced the retirement of Captain Jeff Martin, WestJet Executive Vice-President and Chief Operating Officer, effective February 26, 2021. Jeff will be returning to the U.S. to be with his family.

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