Rand Parent/Atlas Air to sell $800 million secured notes Feb. 6 week; initial talk 9% area

By Paul A. Harris

Portland, Ore., Feb. 6 – Rand Parent, LLC kicked off an $800 million offering of seven-year first-lien senior secured notes (Ba1/BB/BB+) on Monday, according to market sources.

The deal, backing the buyout of Atlas Air by Apollo, was the subject of a Monday conference call with investors and is expected to price later in the Feb. 6 week.

Initial guidance has the notes coming to yield in the 9% area, a source said.

Joint bookrunner Barclays will bill and deliver. Goldman Sachs & Co. LLC, Credit Agricole CIB, Mizuho Securities USA Inc. and Apollo Global Securities LLC are also joint bookrunners.

The Rule 144A for life notes come with three years of call protection.

Proceeds plus proceeds from a concurrent $800 million term loan will be used to help fund the buyout of the company by Apollo, J.F. Lehman & Co. and Hill City Capital. The buyout has an enterprise valuation of about $5.2 billion and is expected to close in the first quarter of 2023.

Atlas Air is a Purchase, N.Y.-based provider of outsourced aircraft and aviation operating services.

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