AIR T INC. Enters and Terminates Agreements, Creates Obligations

Ticker: AIRTP · Form: 8-K · Filed: Aug 30, 2024 · CIK: 353184

Sentiment: neutral

Topics: material-agreement, financial-obligation, company-name-change

Related Tickers: AIRT

TL;DR

AIRT just signed and broke deals, and now owes money. Big moves happening.

AI Summary

On August 30, 2024, AIR T INC. entered into a material definitive agreement and also terminated a material definitive agreement. The company also created a direct financial obligation or an obligation under an off-balance sheet arrangement. Specific details regarding the nature of these agreements and obligations are not provided in this summary.

Why It Matters

This filing indicates significant changes in AIR T INC.'s contractual and financial commitments, which could impact its future operations and financial health.

Risk Assessment

Risk Level: medium — The simultaneous entry into and termination of material agreements, along with the creation of new financial obligations, suggests potential volatility and uncertainty in the company's business strategy and financial standing.

Key Players & Entities

FAQ

What was the nature of the material definitive agreement entered into by AIR T INC. on August 30, 2024?

The filing indicates the entry into a material definitive agreement, but the specific details of this agreement are not provided in the provided text.

What was the reason for the termination of a material definitive agreement by AIR T INC. on August 30, 2024?

The filing states that a material definitive agreement was terminated, but the reasons for this termination are not detailed in the provided text.

What type of direct financial obligation or off-balance sheet arrangement was created by AIR T INC.?

The filing confirms the creation of a direct financial obligation or an obligation under an off-balance sheet arrangement, but the specifics are not elaborated upon in the provided text.

When did AIR T INC. change its name from AIR TRANSPORTATION HOLDING CO INC?

AIR T INC. changed its name from AIR TRANSPORTATION HOLDING CO INC on July 3, 1992.

What is AIR T INC.'s Standard Industrial Classification code?

AIR T INC.'s Standard Industrial Classification code is 4513, which corresponds to AIR COURIER SERVICES.

Filing Stats: 1,475 words · 6 min read · ~5 pages · Grade level 10.8 · Accepted 2024-08-30 17:11:34

Key Financial Figures

Filing Documents

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement On August 29, 2024, Air T, Inc., a Delaware corporation, as Loan Party Agent (the "Company") and twelve of the Company's subsidiaries entered into a credit agreement (the "New Credit Agreement") with Alerus Financial, National Association (the "Lender"). The New Credit Agreement provides for a secured revolving credit facility in an initial maximum principal amount of up to $14 million. Availability under the revolving credit facility is subject to a borrowing base, as further set forth therein. The revolving credit facility provides for a sub-facility for the issuance of letters of credit in an aggregate amount not to exceed $3 million, with the outstanding amount of any such letters of credit reducing availability for borrowings under the revolving credit facility. The revolving credit facility matures on February 28, 2026. Loans outstanding under the revolving credit facility will bear interest at a rate per annum equal to the greater of 5.00% or one-month SOFR plus 2.00%. In addition to the revolving credit facility, the New Credit Agreement provides for two secured term loans – Term Note A and Term Note B. Term Note A is a loan in the principal amount of $10,720,000 that matures on August 15, 2029. Term Note A bears interest at a rate per annum equal to the greater of 5.00% or one-month SOFR plus 2.00%. Term Note A requires monthly payments of principal commencing September 15, 2024 with such payments set at a 7 year level principal amortization and a payment of $3,190,476.05 due at maturity. A prepayment premium based on the amount prepaid is due in certain circumstances. Term Note B is a loan in the principal amount of $2,280,000 that matures on August 15, 2029. Term Note B bears interest at a rate per annum equal to the greater of 5.00% or one-month SOFR plus 2.00%. Term Note B requires monthly payments of principal commencing September 15, 2024 with such payments set at a 25 year level principal amo

02 Termination of Material Definitive Agreements

Item 1.02 Termination of Material Definitive Agreements The information set forth in Item 1.01 of this Current Report on Form 8-K with respect to the termination of the terminated revolving credit facility and related loan agreements with Minnesota Bank & Trust is hereby incorporated by reference in this Item 1.02. 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 Report on Form 8-K is incorporated herein by reference to this Item 2.03.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits (d) Exhibits 10.1 Credit Agreement by and among AirCo, LLC, a North Carolina limited liability company, Airco 2, LLC, a Kansas limited liability company, Air'Zona Aircraft Services, Inc., an Arizona corporation, AirCo Services, LLC, a North Carolina limited liability company, CSA Air, Inc., a North Carolina corporation, Global Ground Support, LLC, a North Carolina limited liability company, Jet Yard, LLC, an Arizona limited liability company, Jet Yard Solutions, LLC, an Arizona limited liability company, Mountain Air Cargo, Inc., a North Carolina corporation, Stratus Aero Partners LLC, a Delaware limited liability company, Worldwide Aircraft Services, Inc., a Kansas corporation, and Worthington Aviation, LLC, a North Carolina limited liability company, as Borrowers, Air T, Inc. as Loan Party Agent and Alerus Financial, National Association executed August 29, 2024, without schedules. 10.2 Form of Revolving Credit Note by the Borrowers executed August 29, 2024. 10.3 Form of Term Note A by the Borrowers executed August 29, 2024. 10.4 Form of Term Note B by the Borrowers executed August 29, 2024. 10.5 Form of Security Agreement by the Borrowers in favor of Alerus Financial executed August 29, 2024. 10.6 Form of Pledge Agreement by Air T, Inc. in favor of Alerus Financial executed August 29, 2024 10.7 Form of Guaranty of Air T, Inc. executed August 29, 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: August 30, 2024 AIR T, INC. By: /s/ Brian Ochocki Brian Ochocki, Chief Financial Officer

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