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Air T, Inc. Secures $15.0 Million in Private and Non-Recourse Debt Transaction, Propelling Strategic Growth Initiatives
MINNEAPOLIS, MN / ACCESSWIRE / March 5, 2024 / Air T, Inc. (NASDAQ:AIRT) (the "Company") recently announced the closing of a direct, structured $15,000,000
About this update from Air T, Inc.
[{"type":"text","content":"MINNEAPOLIS, MN / ACCESSWIRE / March 5, 2024 / Air T, Inc. (NASDAQ:AIRT) (the \"Company\") recently announced the closing of a direct, structured $15,000,000 private note transaction with a major pension plan on February 22, 2024 (the \"Transaction\"). The Transaction involved 7-year notes bearing 8.5% interest per annum.The Company believes that the Transaction represents an important step forward as it allows the Company to securitize its ownership in more than fifteen aviation-related joint venture interests, currently managed by its subsidiaries, in order to raise non-recourse debt which the Company can use to pay down other debt, as well as make further aviation-related investments. As part of the Transaction, all of the cash flows from the securitized joint venture interests will be used to pay interest and principal, with the excess available to make additional aviation-related joint venture investments within the structure. The Transaction will also allow the Company to redeploy capital into other opportunities. Some of the proceeds from the Transaction were used to fully pay down the Company's revolving debt facility with Minnesota Bank & Trust.\"We believe this transaction represents a win-win result for all parties. We are pleased that we were able to close a transaction of this strategic importance with an experienced aviation investor. We are hopeful that this is the first of several transactions of this type\" said Nick Swenson, CEO of the Company.For more information on this transaction, please see the Company's 8-K filing dated February 26, 2024.NOTE REGARDING STOCKHOLDER QUESTIONSIf you have questions related to this release or other Air T matters, please use our interactive Q&A capability, through Slido.com, accessible from our website, to submit your questions. We intend to keep that link open and available for shareholder questions. Questions submitted through Slido will be answered \"live\" and in writing at our Annual Meeting, and via a written response on a quarterly basis. Note that legal and pragmatic requirements restrict us from answering every question posted, yet we intend to address all reasonable and relevant questions with a written answer.ABOUT AIR T, INC.Established in 1980, Air T Inc. is a portfolio of powerful businesses and financial assets, each of which is independent yet interrelated. Its ...