Stock market today: Stocks fall as investors rotate out of tech into Jackson Hole
MINNEAPOLIS - Air T, Inc. (NASDAQ:AIRT), a diversified portfolio of businesses and financial assets with annual revenue of $298 million, has expanded its financing agreement from $30 million to $100 million, the company announced today. According to InvestingPro data, the company currently maintains a market capitalization of approximately $48 million. This move aims to bolster Air T’s long-term capital foundation and align with its strategic growth objectives.
The renegotiated terms with existing institutional investors will provide Air T’s subsidiary, AAM 24-1, LLC, with non-recourse capital in scheduled disbursements through 2027, with the full note maturing in 2035. While InvestingPro analysis indicates the company operates with a significant debt burden, with a debt-to-equity ratio of 27.8, its current ratio of 1.9 suggests adequate liquidity to meet short-term obligations. This restructuring is designed to enhance the company’s capital flexibility, allowing it to pursue long-term value creation with increased certainty.
Nick Swenson, Chairman and CEO of Air T, stated that this revised financial structure marks a significant step in the company’s commitment to building value and represents a continued vote of confidence from sophisticated capital partners.
The additional capital will support the growth and strategic initiatives of Crestone Air Partners, Inc., a full-service aviation asset management platform, and other Air T subsidiaries. Crestone Air Partners invests in commercial jet aircraft and engines, leasing them to airlines worldwide with a focus on the secondary market and the latter part of the asset lifecycle.
This announcement is part of Air T’s broader strategy to strengthen and diversify its after-tax cash flow per share, as well as to enhance its core businesses and potentially expand into adjacent industries. The company, founded in 1980, operates in segments including overnight air cargo, ground equipment sales, commercial jet engines and parts, and corporate and other.
Air T has also provided an interactive Q&A capability for stakeholders through Slido.com, accessible from the company’s website, to address shareholder questions. This platform will be used to respond to inquiries "live" at the Annual Meeting and in writing on a quarterly basis.
The information in this article is based on a press release statement from Air T, Inc. For comprehensive financial analysis and additional insights, including more than 30 financial metrics and key investment tips, investors can access InvestingPro’s detailed company report.
In other recent news, Air T Inc. has entered into a new financing agreement to issue a Multiple Advance Senior Secured Note with institutional investors, allowing for a principal amount of up to $100 million. As of the closing date, $40 million has been disbursed, with an additional $60 million expected in future increments. The note carries an annual interest rate of 8.5% and will mature in 2035, replacing previous financing arrangements. Additionally, Air T Inc.’s subsidiary, Mountain Air Cargo, has completed the acquisition of Royal Aircraft Services to enhance its aircraft maintenance and overhaul services. This acquisition is expected to improve operational efficiency and service quality, with Royal Aircraft Services maintaining its brand. Furthermore, Air T Inc. has amended its credit agreement with Alerus Financial, securing a $3 million overline revolving loan to support seasonal borrowing needs. The amendment also includes a revised $14 million revolving credit note and releases certain co-borrowers from loan obligations. These developments are part of Air T Inc.’s strategic financial adjustments to provide necessary flexibility for operational requirements.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.