StockNews.AI
AIRT
StockNews.AI
75 days

AirT Announces $100 Million Multi-Year Financing Agreement with Institutional Investors

1. Air T renegotiated financing from $30 million to $100 million, enhancing capital flexibility. 2. New funding supports growth initiatives and strategic alignment through 2027 and maturity in 2035. 3. CEO highlights the financing as a vote of confidence from institutional investors.

5m saved
Insight
Article

FAQ

Why Bullish?

Increasing the financing amount reflects strong investor confidence, possibly driving AIRT's stock up, similar to historical scenarios where financing was positively received. Enhanced capital flexibility is likely to enable better strategic growth and investment opportunities.

How important is it?

This article outlines significant corporate financing changes that could leverage growth opportunities and indicate future profitability, which is crucial for investors. Understanding capital management is essential for assessing future stock performance.

Why Long Term?

The impact will unfold over several years as capital is disbursed and utilized for growth, reflecting long-term strategic planning.

Related Companies

AAMCrestone Air Partners
Air T, Inc. (NASDAQ:AIRT) announced on June 2nd the successful renegotiation of a key financing agreement involving its wholly owned subsidiary, AAM 24-1, LLC.The updated agreement, reached with the Company's existing institutional investors, grows the transaction from $30,000,000 to $100,000,000, extends repayment timelines and increases financial flexibility. These changes support Air T's long-term capital foundation while maintaining alignment with its strategic objectives and commitment to growth."This modified financing structure significantly enhances our capital flexibility and allows us to pursue long-term value creation with greater certainty. It's another big step in support of the value we're seeking to build. And it's a scaling investment representing a continued vote of confidence by a sophisticated capital partner," said Nick Swenson, Chairman and CEO of Air T.As part of the restructuring, Air T and its subsidiary will receive committed, non-recourse capital in scheduled disbursements through 2027, with the full note maturing in 2035. The extended financing arrangement reinforces the Company's investment capacity on a co-investor as well as sole investor basis. This capital will also be allocated to support the growth and strategic initiatives of Crestone Air Partners, Inc., a full-service aviation asset management platform, and other Air T subsidiaries.NOTE REGARDING STAKEHOLDER QUESTIONSIf you have questions related to this release or other Air T matters, please use our interactive Q&A capability, through Slido.com, accessible from our website, to submit your questions. We intend to keep that link open and available for shareholder questions. Questions submitted through Slido will be answered "live" and in writing at our Annual Meeting, and via a written response on a quarterly basis. Note that legal and pragmatic requirements restrict us from answering every question posted, yet we intend to address all reasonable and relevant questions with a written answer.ABOUT AIR T, INC.Established in 1980, Air T Inc. is a portfolio of powerful businesses and financial assets, each of which is independent yet interrelated. Its core segments are overnight air cargo, ground equipment sales, commercial jet engines and parts, and corporate and other. We seek to expand, strengthen and diversify Air T's after-tax cash flow per share. Our goal is to build Air T's core businesses, and when appropriate, to expand into adjacent and other industries. We seek to activate growth and overcome challenges while delivering meaningful value for all stakeholders. For more information, visit www.airt.net.ABOUT CRESTONE AIR PARTNERS, INC.Crestone Air Partners, Inc. invests in commercial jet aircraft and the engines that power them on behalf of our capital partners. We are a full-service aviation asset management platform with a diverse portfolio of aircraft and engines leased to airlines globally. We target transactions in the secondary market, focusing on the last decade of the asset lifecycle. We take a collaborative approach with our clients by offering flexible lease terms tailored to our customers' requirements. Crestone brings unique value to transactions by drawing on the expertise and capabilities of interrelated aviation specialist subsidiary businesses across the Air T family (airframe material sales, landing gear leasing, engine material sales, disassembly, and aircraft storage). Crestone is headquartered in Denver, Colorado, and is a wholly owned business unit of Air T, Inc. Additional information can be found at: www.crestoneairpartners.com.CONTACT:Jeff GolbusAir T, Inc.[email protected]Tori CerdaCrestone Air Partners, Inc.Manager, Marketing & Operations[email protected]SOURCE: Air T, Inc.

Related News