← AIR T INC

Credit agreement

Signed Aug 29, 2024

Committed
$40m
Matures
Dec 2026
Agent
Not stated
TrancheSizeMaturesMargin
Accordion Commitment (seasonal revolver)$3.5mDec 2026225–275 bps
Revolving Credit Facility$25mAug 2029225–275 bps
Consolidated Term Loan$11.5mAug 2031225–275 bps

Priced over Term SOFR (Revolving credit facility, Term Loan A, Other tranche).

LevelConditionMarginUnused fee
Level Level 1< 1.50:1.00225 bpsn/a
Level Level 2≥ 1.50:1.00 and < 2.50:1.00250 bpsn/a
Level Level 3≥ 2.50:1.00275 bpsn/a

Lenders: Alerus Financial, National Association

Tested quarterlyHeadroom not yet measured3.00
Permit the Leverage Ratio to be greater than 3.00 to 1.00 at any Measurement Date.
Read the filing on sec.gov ↗

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Amendments

  1. Sep 1, 2026

    Amendment

    Amendment No. 7 terminates the Overline facility, adds a new seasonal Accordion revolving option up to $3.5 million, sets a consolidated term loan of $11.46 million maturing August 27, 2031, and updates the revolver to $25 million maturing August 27, 2029. It also establishes a leverage-based Applicable Margin grid, a 0.25% unused commitment fee, revises the Borrowing Base advance rates, and sets the maximum Leverage Ratio covenant at 3.00x.
    • Overline Commitment: n/a → terminated §Section 2
    • Revolving Credit Commitment: n/a → 25000000 §Section 3(a) – definition of “Revolving Credit Commitment”
    • Revolver Maturity (Revolving Credit Termination Date): n/a → 2029-08-27 §Section 3(a) – definition of “Revolving Credit Termination Date”
    • Consolidated Term Loan amount: n/a → 11460000 §Section 3(c) – Section 2.01(b)
    • Consolidated Term Loan Maturity: n/a → 2031-08-27 §Section 3(a) – definition of “Maturity Date”
    • Accordion Commitment (maximum): n/a → 3500000 §Section 3(b) – definition of “Accordion Commitment”
    • Accordion Initial Termination Date: n/a → 2026-12-25 §Section 3(b) – definition of “Accordion Termination Date”
    • Applicable Margin (effective date): n/a → 2.50% §Section 3(b) – definition of “Applicable Margin”
    • Unused Commitment Fee rate: n/a → 0.25% §Section 3(i) – Section 2.10
    • Borrowing Base – Eligible Investment Grade Accounts advance rate: n/a → 85% §Section 3(a) – definition of “Borrowing Base”
    • Borrowing Base – other Eligible Accounts advance rate: n/a → 80% §Section 3(a) – definition of “Borrowing Base”
    • Borrowing Base – Eligible Inventory advance rate: n/a → 50% §Section 3(a) – definition of “Borrowing Base”
    • Borrowing Base – Eligible WIP Inventory advance rate: n/a → 40% §Section 3(a) – definition of “Borrowing Base”
    • Borrowing Base – Inventory and WIP cap: n/a → 75% §Section 3(a) – definition of “Borrowing Base”
    • Financial covenant – Leverage Ratio maximum: n/a → 3.00 §Section 3(j) – Section 7.12(b)
    Filing ↗
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