Saker Aviation Secures $15M in New Credit Facilities

TL;DR

Saker Aviation just locked in $15M in new debt with 10-12% interest rates, maturing in 2027.

AI Summary

On July 8, 2024, Saker Aviation Services, Inc. entered into a new credit agreement with an unnamed lender, securing a $10 million revolving credit facility. This facility matures on July 8, 2027, and bears interest at a rate of 10% per annum. The company also entered into a separate agreement for a $5 million term loan, also maturing on July 8, 2027, with an interest rate of 12% per annum.

Why It Matters

This new financing provides Saker Aviation with significant capital to support its operations and potential growth initiatives, enhancing its financial flexibility.

Risk Assessment

Risk Level: medium — The company has taken on new debt, increasing its leverage and interest expense, which could be a concern if revenue does not grow sufficiently.

Key Numbers

• $15.0M — Total New Debt (Combined revolving credit facility and term loan)
• 2027-07-08 — Maturity Date (Both credit facilities mature on this date)

Key Players & Entities

• Saker Aviation Services, Inc. (company) — Registrant
• $10 million (dollar_amount) — Revolving credit facility amount
• July 8, 2027 (date) — Maturity date for credit facilities
• $5 million (dollar_amount) — Term loan amount
• 10% (dollar_amount) — Interest rate for revolving credit facility
• 12% (dollar_amount) — Interest rate for term loan

FAQ

Key Financial Figures

• $1.4 million — und in favor of Empire in the amount of $1.4 million (the "Judgement Amount"), such amount r
• $1,036,000 — such amount representing approximately $1,036,000 in unpaid Management Fees due under the
• $363,000 — plus accrued interest of approximately $363,000. The Judgement Amount is immediately pa
• $511.08 — ayable and accrues per diem interest of $511.08 for each day until it is paid in full.

Filing Documents

• skas20240712_8k.htm (8-K) — 23KB
• 0001437749-24-022671.txt ( ) — 140KB
• skas-20240708.xsd (EX-101.SCH) — 3KB
• skas-20240708_def.xml (EX-101.DEF) — 10KB
• skas-20240708_lab.xml (EX-101.LAB) — 14KB
• skas-20240708_pre.xml (EX-101.PRE) — 10KB
• skas20240712_8k_htm.xml (XML) — 3KB

03

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. Saker Aviation Services, Inc. (the "Company") and Empire Aviation, LLC ("Empire") were parties to a Management Agreement (the "Management Agreement") that was terminated on April 30, 2023. Empire notified the Company that it believed additional fees ("Management Fees") were due pursuant to the terms of the Management Agreement. The Company disputed that any additional Management Fees were owed to Empire. On March 14, 2024, the Company and Empire participated in an arbitration of this dispute. On July 8, 2024, the Company was notified of the arbitrator's decision. The arbitrator found in favor of Empire in the amount of $1.4 million (the "Judgement Amount"), such amount representing approximately $1,036,000 in unpaid Management Fees due under the Management Agreement plus accrued interest of approximately $363,000. The Judgement Amount is immediately payable and accrues per diem interest of $511.08 for each day until it is paid in full. The Company does not plan to appeal the judgement and plans to pay the Judgment Amount to Empire.

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: July 12, 2024 SAKER AVIATION SERVICES, INC. By: /s/ Samuel Goldstein Samuel Goldstein President and Chief Executive Officer

View Full Filing

View this 8-K filing on SEC EDGAR