Company: AIRTP
Filing Date: 2025-08-15
Form Type: 424B5
Source: 0000353184-25-000099
Chunk: 13

Company: AIR T INC
Filing Date: 2025-08-15
Form: 424B5
Chunk 13
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 as well as the Capital Securities. You should carefully review the information in this prospectus supplement and the accompanying prospectus about both of these securities and the Guarantee.

<div align='center'>S-5</div>

The ranking of Air T’s obligations under the Junior Subordinated Debentures and the Guarantee creates a risk that the Trust may not be able to pay amounts due to holders of the Capital Securities.

The ability of the Trust to pay amounts due to holders of the Capital Securities is solely dependent upon Air T making payments on the Junior Subordinated Debentures as and when required. All obligations of Air T under the Guarantee, the Junior Subordinated Debentures and other documents described herein are unsecured and rank subordinate and junior in right of payment to all current and future Senior and Subordinated Debt, the amount of which is unlimited. 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). None of the Indenture, the Guarantee or the Trust Agreement places any limitation on the amount of secured or unsecured debt, including Senior and Subordinated Debt, that may be incurred by Air T or its subsidiaries. Further, there is no limitation on Air T’s ability to issue additional Junior Subordinated Debentures in connection with any further offerings of Capital Securities, and such additional debentures would rank pari passu with the Junior Subordinated Debentures.

Air T has the option to extend the interest payment period; tax consequences of a deferral of interest payments.

So long as no Debenture Event of Default (as defined) has occurred and is continuing, at any time on or after, June 7, 2024, Air T has the right under the Indenture to defer the payment of interest on the Junior Subordinated Debentures at any time or from time to time for a period not exceeding 20 consecutive quarters with respect to each Extension Period, provided that no Extension Period may extend beyond the Stated Maturity of the Junior Subordinated Debentures. As a consequence of any such deferral, quarterly Distributions on the Capital Securities by the Trust will be deferred (and the amount of Distributions to which holders of the Capital Securities are entitled will accumulate additional amounts thereon at the rate of 8% per annum, compounded quarterly, from the relevant payment date for such Distributions, to the extent permitted by applicable law) during any such Extension