MINNEAPOLIS - Air T, Inc. (NASDAQ:AIRT), a diversified portfolio of aviation businesses, has completed a structured private note transaction, securing $15 million in funding from a major pension plan on February 22, 2024. The 7-year notes carry an 8.5% annual interest rate.
The deal enables Air T to securitize its interests in over fifteen aviation-related joint ventures, which are managed by its subsidiaries. This move allows the company to acquire non-recourse debt that can be used to repay existing obligations and to invest in additional aviation ventures. The cash flows from these joint ventures will be allocated to servicing the debt, with any surplus being reinvested within the same structure.
A portion of the proceeds from this transaction has been utilized to fully repay the company's revolving credit facility with Minnesota Bank & Trust. Nick Swenson, CEO of Air T, expressed optimism about the transaction, stating, "We believe this transaction represents a win-win result for all parties. We are pleased that we were able to close a transaction of this strategic importance with an experienced aviation investor."
Investors and stakeholders can find more details about this financial move in Air T's 8-K filing dated February 26, 2024. The company has also provided an interactive Q&A platform via Slido.com for shareholders to submit questions, which will be addressed at the Annual Meeting and through quarterly written responses.
Founded in 1980, Air T's business portfolio includes overnight air cargo, aviation ground support equipment manufacturing and sales, commercial jet engines and parts, and other corporate endeavors. The company aims to enhance its after-tax cash flow per share by growing and diversifying its business segments.
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