AIR T INC Reports New Material Agreement & Financial Obligation

Ticker: AIRTP · Form: 8-K · Filed: Feb 26, 2024 · CIK: 353184

Sentiment: neutral

Topics: debt, material-agreement, financial-obligation

TL;DR

**AIR T INC just took on new debt or a major agreement, but the filing is light on details.**

AI Summary

AIR T INC filed an 8-K on February 26, 2024, reporting the entry into a material definitive agreement and the creation of a direct financial obligation. The filing indicates a period of report from February 22, 2024, to February 26, 2024, and mentions 'CumulativeCapitalSecuritiesMember' and 'CommonStockMember' in relation to these dates. Specific details regarding the nature or amounts of the agreement and obligation are not provided in the excerpt.

Why It Matters

This filing signals new financial commitments for AIR T INC, which could impact its balance sheet and future operational flexibility.

Risk Assessment

Risk Level: medium — The filing indicates new financial obligations without specifying amounts or terms, creating uncertainty about potential impact.

Key Players & Entities

FAQ

What is the nature of the material definitive agreement AIR T INC entered into?

The provided filing excerpt states that AIR T INC entered into a 'Material Definitive Agreement' but does not disclose the specific nature or terms of this agreement.

What kind of direct financial obligation did AIR T INC create?

The filing indicates the 'Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant,' but the specific type, amount, or terms of this obligation are not detailed in the excerpt.

What dates are relevant to the events reported in this 8-K?

The relevant dates are February 22, 2024, as the start of the period of report, and February 26, 2024, as the end of the period of report and the filing date.

Does the filing provide specific dollar amounts for the new financial obligation or agreement?

No, the provided excerpt of the 8-K filing does not include any specific dollar amounts related to the material definitive agreement or the direct financial obligation.

What is AIR T INC's primary business according to the filing?

According to the filing, AIR T INC's Standard Industrial Classification (SIC) is 'AIR COURIER SERVICES [4513].'

Filing Stats: 975 words · 4 min read · ~3 pages · Grade level 11.8 · Accepted 2024-02-26 14:00:51

Key Financial Figures

Filing Documents

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement On February 22, 2024 (the "Closing Date"), Air T, Inc., a Delaware corporation (the "Company"), along with its wholly owned subsidiary AAM 24-1, LLC, a Minnesota limited liability company (the "Issuer"), entered into a Note Purchase Agreement (the "Note Purchase Agreement") with Honeywell Common Investment Fund and Honeywell International Inc. Master Retirement Trust (each, an "Investor" and together, the "Investors") pursuant to which the Issuer agreed to issue and sell 8.5% senior secured notes in the aggregate principal amount of $15,000,000 to the Investors (each a "Note" and collectively, the "Notes"; and the transaction, "Financing"), for an aggregate purchase price of $14,850,000. The Notes bear an annual interest rate of 8.5% which is computed on the basis of a 30/360-day year and actual days elapsed and is payable semi-annually in arrears, pursuant to the terms of the Notes. The maturity date of the Notes is February 22, 2031. The Notes contain standard and customary events of default including, but not limited to, failure to make payments when due under the Note, failure to comply with certain covenants contained in the Note, or bankruptcy or insolvency of, or certain monetary judgments against the Issuer or the Company. The Issuer may prepay all or a portion of the outstanding principal and accrued but unpaid interest at any time, provided that (i) if the Issuer prepays all or any portion of the Notes within one year from the Closing Date, the Issuer is required to pay the Investors a prepayment premium equal to two percent (2.0%) of the amount being prepaid, and (ii) if the Issuer prepays all or any portion of the Notes after the first anniversary of the Closing Date but on or prior to the second anniversary of the Closing Date, the Issuer is required to pay the Investors a prepayment premium equal to one percent (1.0%) of the amount being prepaid . A continuing first priority lien and security

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits 10.1 Note Purchase Agreement among Air T, Inc., AAM 24-1, LLC, Honeywell Common Investment Fund and Honeywell International Inc. Master Retirement Trust, dated February 22, 2024. 10.2 Form of Senior Secured Promissory Note, dated February 22, 2024. 104 Inline XBRL for the cover page of this Current Report on Form 8-K.

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: February 26, 2024 AIR T, INC. By: /s/ Brian Ochocki Brian Ochocki, Chief Financial Officer

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