Atlas Air Worldwide has priced its proposed convertible senior notes offering at 1.875%. The initial $250 million aggregate principal amount was upsized to $260 million.

Atlas Air Worldwide has granted the underwriters an option to purchase, within a 13-day period beginning on and including the date the notes are first issued, up to an additional $39 million aggregate principal amount of the notes from the company, solely to cover over-allotments. The has closed on 23 May, 2017, with additional $29 million aggregate principal amount of convertible senior notes issued pursuant to the partial exercise of the underwriters’ over-allotment option. Davis Polk advised the managers on behalf of the several underwriters in connection with an SEC-registered offering by Atlas Air Worldwide Holdings.

The notes will be senior unsecured obligations of Atlas Air Worldwide. The notes will mature on 1 June, 2024.

Morgan Stanley & Co., BNP Paribas Securities and Citigroup will act as joint bookrunners for the offering. Credit Agricole Securities (USA) and J.P. Morgan Securities will act as co-lead managers, with CJS Securities, Cowen and Company, Seaport Global Securities, and Sidoti & Company, acting as co-managers.