Company: AIRTP
Filing Date: 2025-08-15
Form Type: 424B5
Source: 0000353184-25-000099
Chunk: 14

Company: AIR T INC
Filing Date: 2025-08-15
Form: 424B5
Chunk 14
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 Period. During any such Extension Period, Air T will be prohibited from making certain payments or distributions with respect to Air T’s capital stock (including dividends on or redemptions of common or preferred stock) and from making certain payments with respect to any debt securities of Air T that rank pari passu with or junior in interest to the Junior Subordinated Debentures; however, Air T will NOT be restricted from (a) paying dividends or distributions in common stock of Air T, (b) redeeming rights or taking certain other actions under a stockholders’ rights plan, (c) making payments under the Guarantee or (d) making purchases of common stock generally or related to the issuance of common stock or rights under any of Air T’s benefit plans for its directors, officers or employees. Further, during an Extension Period, Air T would have the ability to continue to make payments on Senior and Subordinated Debt. At June 30, 2025, the aggregate outstanding Senior and Subordinated Debt of Air T was approximately $88.4 million (which figure does not include the trust preferred debt of $48.5 million). Prior to the termination of any Extension Period, Air T may further extend such Extension Period provided that such extension does not cause such Extension Period to exceed 20 consecutive quarters or to extend beyond the Stated Maturity. Upon the termination of any Extension Period and the payment of all interest then accrued and unpaid (together with interest thereon at the annual rate of 8%, compounded quarterly, to the extent permitted by applicable law), Air T may elect to begin a new Extension Period subject to the above requirements. There is no limitation on the number of times that Air T may elect to begin an Extension Period.

Because Air T believes the likelihood of it exercising its option to defer payments of interest is remote, the Junior Subordinated Debentures will be treated as issued without “original issue discount” for United States federal income tax purposes. As a result, holders of Capital Securities will include interest in taxable income under their own methods of accounting (i.e., cash or accrual). Air T has no current intention of exercising its right to defer payments of interest by extending the interest payment period on the Junior Subordinated Debentures. However, should Air T elect to exercise its right to defer payments of interest in the future (which shall be possible at any time on or after, June 7, 2024), the market price of the Capital Securities is likely to be adversely affected. A holder that disposes