Air T Inc. Enters Material Definitive Agreement

Ticker: AIRTP · Form: 8-K · Filed: Apr 2, 2024 · CIK: 353184

Sentiment: neutral

Topics: material-agreement, financial-obligation

Related Tickers: AIRT

TL;DR

AIRT just signed a big deal, could be good or bad for cash.

AI Summary

On April 2, 2024, Air T Inc. entered into a material definitive agreement related to a direct financial obligation. The company, previously known as Air Transportation Holding Co Inc. and Atlanta Express Airline Corp., is based in Charlotte, NC.

Why It Matters

This filing indicates a significant financial commitment or obligation for Air T Inc., which could impact its financial stability and future operations.

Risk Assessment

Risk Level: medium — Entering into material definitive agreements can introduce new financial obligations or risks that may not be immediately apparent.

Key Players & Entities

FAQ

What type of material definitive agreement did Air T Inc. enter into?

The filing indicates the entry into a material definitive agreement that constitutes a direct financial obligation or an obligation under an off-balance sheet arrangement of the registrant, but the specific details of the agreement are not provided in this excerpt.

When was this agreement entered into?

The agreement was entered into on April 2, 2024.

What were Air T Inc.'s previous company names?

Air T Inc. was formerly known as Air Transportation Holding Co Inc. and Atlanta Express Airline Corp.

Where is Air T Inc. headquartered?

Air T Inc. is headquartered in Charlotte, NC.

What is the Standard Industrial Classification for Air T Inc.?

The Standard Industrial Classification for Air T Inc. is AIR COURIER SERVICES [4513].

Filing Stats: 835 words · 3 min read · ~3 pages · Grade level 10.8 · Accepted 2024-04-02 16:30:32

Key Financial Figures

Filing Documents

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement On March 28, 2024, Contrail Aviation Support, LLC ("CAS"), a 79%-owned subsidiary Air T, Inc. (the "Company"), entered into Supplement #10 to the Master Loan Agreement with Old National Bank dated June 24, 2019 and Term Loan I. Term Loan I is a multiple advance term loan in the principal amount of $10,000,000 and is secured by a first lien on three engines and other identified collateral recently purchased by CAS The loan requires CAS to disassemble the collateral and place it in CAS inventory. The loan bears a monthly variable interest rate at the 30 Day Term SOFR +3.1148%. The loan requires 18 monthly payments of interest until the loan maturity date of September 20, 2025. Principal reduction payments are due monthly in an amount equal to 100% of the amount of the gross sales proceeds collected that are derived from any of the engines or other specific collateral listed in the security agreement sold during the prior month. In addition to the first lien noted above, the loan is also secured by the current $2,000,000 limited guarantees of the Company and Joe Kuhn. The loan may be prepaid without penalty and includes a quarterly rolling cash flow coverage ratio covenant, a tangible net worth covenant and monthly sales reporting. The loan was fully drawn at closing and the funds were used to prepay the principal balance on Contrail's existing Main Street Loan (Term Loan G) by $10 million. The foregoing description of Supplement #10 to Master Loan Agreement, the Note and the Commercial Security Agreement does not purport to be complete and is qualified in its entirety by reference to the complete text of such documents a copy of which are attached hereto as Exhibit 10.1, 10.2 and 10.3, which are incorporated herein by reference. Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant The information contained in Item 1.01 of this Current Rep

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits 10.1 Supplement #10 to Master Loan Agreement dated June 24, 2019 by and between CAS and Old National Bank dated March 28, 2024, without exhibits. 10.2 Form of Promissory Note Term Note I in the principal amount of $10,000,000 from CAS to Old National Bank dated March 28, 2024. 10.3 Form of Security Agreement from CAS to Old National Bank dated March 28, 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: April 2, 2024 AIR T, INC. By: /s/ Brian Ochocki Brian Ochocki, Chief Financial Officer

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