Company: AIRTP
Filing Date: 2025-05-21
Form Type: 8-K
Source: 0000353184-25-000024
Chunk: 0

Company: AIR T INC
Filing Date: 2025-05-21
Form: 8-K
Item: Item 1.01
Chunk 0
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Item 1.01 Entry into a Material Definitive Agreement

MAC Acquisition of Royal Aircraft Services and Amendment Of Alerus Financing/Term Note C

Effective May 15, 2025, Mountain Air Cargo, Inc. (“ MAC”), a wholly-owned subsidiary of Air T, Inc. (“ Air T”), purchased and acquired all the outstanding membership interests of Royal Aircraft Services, LLC, a Maryland limited liability company (“ Royal”). Royal provides aircraft painting, maintenance, repair, and overhaul services, together with parts sources and sales. The Royal operations will be included within the MAC division operations following the acquisition.

In connection with the acquisition, Air’ Zona Aircraft Services, Inc., AirCo Services, LLC, CSA Air, Inc., Global Ground Support, LLC, Jet Yard, LLC, Jet Yard Solutions, LLC, Mountain Air Cargo, Inc., Stratus Aero Partners, LLC, Worldwide Aircraft Services, Inc., Worthington Aviation, LLC (the “ Borrowers”) under the Revolving Credit Agreement with Alerus Financial, National Association (“ Alerus”) and Royal and Air T entered into Amendment No. 4 to Credit Agreement and Consent (the “ Amendment”) and Term Loan C with Alerus in the amount of $1,050,000. The purpose of the Amendment and Term Note was to provide a term loan to finance the full purchase price of the acquisition, to add Royal as a Borrower to the Alerus credit agreement, as amended and to memorialize Alerus’ consent to the Royal acquisition. The new term loan matures May 15, 2030 and bears interest at the greater of five (5%) percent or the CME one-month term SOFR rate plus 2.25%. Monthly payments on Term Note C commence June 15, 2025 and are equal to $12,500 plus accrued interest. The term loan is secured by the terms of Security Agreement dated as of August 29, 2024.

The foregoing summary of the terms of the Amendment and Term Note C are qualified in their entirety by reference to Term Note C and the Amendment filed as Exhibits 10.1 and 10.2 herewith, which are incorporated herein by reference.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant