Company: AIRTP
Filing Date: 2025-02-26
Form Type: 8-K
Source: 0000353184-25-000014
Chunk: 0

Company: AIR T INC
Filing Date: 2025-02-26
Form: 8-K
Item: Item 1.01
Chunk 0
---
Item 1.01 Entry into a Material Definitive Agreement

On February 21, 2025, Mountain Air Cargo, Inc (MAC), a wholly-owned subsidiary of Air T, Inc., entered into a $2,280,000 term loan with Bank of America, N. A. The term loan requires monthly interest payments commencing March 21, 2025 until payment in full on the February 21, 2030 maturity date. The loan also requires principal payments in equal monthly installments of $9,500 and MAC may prepay the loan at any time in full or in part without penalty. Interest on the loan is at the rate per year of Term SOFR (Adjusted Periodically) plus one and 75/100 percentage points (1.75%). To further secure the loan, MAC agreed to mortgage its real property at 5930 Balsom Ridge Road, Denver, North Carolina. On February 25, 2025, MAC entered into a swap agreement with Bank of America, N. A. to fix the interest rate at 5.99448%.

The new loan with Bank of America contains a number of covenants, including but not limited to: providing financial information and statements, maintaining a fixed coverage ratio of at least 1.25:1.0, a limit on other debts and other liens, maintenance of assets, a limit on loans and investments, a prohibition on a change of ownership and additional negative covenants.

In connection with the financing, Alerus Financial, National Association entered into Amendment No. 2 to Credit Agreement and Consent (“ Amendment No. 2”) on February 21, 2025. Amendment No. 2 provides for Alerus’ consent to the above-referenced transactions and updated the Credit Agreement dated as of August 29, 2024, as amended by amendment No. 1 and other Loan Documents dated as of January 21, 2025 to remove references to Term Loan B, permit the additional borrowings and remove the lien on the Denver, North Carolina real property. In connection with the amendment, Alerus also agreed to deliver documents terminating Alerus’ Deed of Trust and Assignment of Rents on the Denver, North Carolina real property. MAC used the proceeds of the new financing to repay Term Note B with Alerus. Air T, Inc. also acknowledged and agreed to the transactions.

The descriptions above are only a summary of the material provisions of the Bank of America Loan