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Air T, Inc. Announces Exchange Offer for up to 138,000 Common Shares in Exchange for Shares of Air T Funding 8.0% Alpha Income Trust Preferred Securities (TruPs)
Company to Conduct "Modified Dutch Auction" for up to 138,000 Common Shares in Exchange for TruPs; Offer Price Between 1.05 and 1.4 TruPs Per Share Represents
About this update from Air T, Inc.
[{"type":"text","content":"Company to Conduct \"Modified Dutch Auction\" for up to 138,000 Common Shares in Exchange for TruPs; Offer Price Between 1.05 and 1.4 TruPs Per Share Represents a Premium of 13% to 51% Over Current Market PriceTruPs Shares Valued at Liquidation Preference of $25.00 per Share with 8.0% DistributionDENVER, NC / ACCESSWIRE / March 28, 2023 / Air T, Inc. (NASDAQ:AIRT) (\"AIRT\" or the \"Company\") today announced its plan to conduct an exchange offer for up to 138,000 of its shares of common stock, $0.25 par value per share (\"Common Shares\"). The Company will acquire Common Shares in exchange for consideration consisting of newly‑issued shares of Air T Funding 8.0% Alpha Income Trust Preferred Securities valued at their liquidation preference $25.00 per share (\"TruPs\") (collectively, the \"Exchange Offer\"). The TruPs are traded on the NASDAQ Global Market under the symbol \"AIRTP.\"Information on the Exchange Offer and \"Modified Dutch Auction\" ProcedureThe Company intends to conduct the Exchange Offer through a procedure called a \"Modified Dutch Auction.\" For a common shareholder choosing to participate in the Exchange Offer, this procedure allows the shareholder to select the number of TruPs for which they are willing to exchange their Common Shares. After all tendering shareholders indicate their respective amounts, the Company will issue the lowest number of TruPs that will permit the Company to purchase as many Common Shares as possible, up to the maximum of 138,000 Common Shares. The proposed range for the Exchange Offer is expected to be 1.05 TruPs to 1.40 TruPs per share of Air T common stock. After all tendering shareholders indicate their respective number of TruPs, the Company will pay the lowest number of TruPs indicated that will permit the Company to purchase as many Shares as possible, up to the maximum of 138,000 Common Shares.[1] The Company currently anticipates that the offer will expire July 6, 2023.Distributions on the TruPs Shares are cumulative at the annual rate of 8.0% of the $25.00 per share liquidation preference and distributions are payable quarterly on February 15, May 15, August 15 and November 15 of each year, beginning with the first payment to exchanging shareholders on August 15, 2023.Exchange Offer's Potential Benefits to ShareholdersThe Board believes the Exchange Offer is in the best int...