Air T Inc (NASDAQ:AIRT), a Delaware-based air courier services provider with a market capitalization of $54.51 million and annual revenue of $284.09 million, has announced an extension of its revolving credit agreement with Alerus Financial (NASDAQ:ALRS), National Association. As per the filing with the Securities and Exchange Commission on Tuesday, the amendment extends the credit facility's maturity from February 28, 2026, to August 28, 2026. According to InvestingPro, the company maintains a FAIR financial health score of 1.9.
The company, along with twelve of its subsidiaries, entered into Amendment No. 1 to the Credit Agreement and Other Loan Documents on Monday. The extension signifies the only change to the agreement, with all other terms and conditions remaining consistent with the original credit agreement. The company's current ratio of 2.27 and total debt-to-capital ratio of 0.70 reflect its financial position.
The detailed terms of the amendment are disclosed in Exhibit 10.1 attached to the current report, which can be referenced for a comprehensive understanding of the modifications. The extension provides Air T Inc with continued financial flexibility for an additional six months, ensuring operational support for its services across the air courier sector.
This financial maneuver is part of Air T Inc's broader financial strategy as it navigates the market dynamics of the air courier industry. The company's subsidiaries, which include a range of aviation-related businesses such as cargo operations, ground support equipment manufacturing, and aircraft maintenance services, are also party to the agreement.
In other recent news, Air T Inc, a North Carolina-based air courier services provider, has been making substantial financial and operational strides. The company recently expanded its financing by securing $30 million in senior notes through an agreement with Honeywell Common Investment Fund and Honeywell International Inc (NASDAQ:HON). Master Retirement Trust. The notes, which carry an 8.5% annual interest rate and are set to mature in 2031, increase the company's debt capacity, providing additional financial flexibility.
In personnel changes, Air T Inc announced the appointment of Tracy Kennedy as the new Chief Financial Officer, succeeding Brian Ochocki. Kennedy, who has six years of experience with the company, will now be responsible for overseeing the company's financial operations.
Additionally, Air T Inc has entered into a $10 million loan agreement with Old National Bank to facilitate the acquisition of two Airbus planes through its subsidiary, CASP Leasing I, LLC. This strategic move aligns with the company's efforts to expand its aircraft leasing and parts sales business.
The company also held its 2024 Annual Meeting of Stockholders, where key decisions were made, including the approval of executive officers' compensation and the ratification of Deloitte & Touche LLP as the company's independent registered public accounting firm for the fiscal year 2025.
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