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Air T Inc (NASDAQ:AIRT), a $42 million market cap air courier service provider trading at $15.55, has amended its credit agreement with Alerus Financial (NASDAQ:ALRS), National Association, securing an additional $3 million overline revolving loan to support its seasonal borrowing needs, as disclosed in a recent SEC filing. InvestingPro analysis shows the company operates with a significant debt burden, with total debt representing 72% of capital. The amendment, effective March 31, 2025, also includes a revised $14 million revolving credit note and the release of certain co-borrowers from loan obligations.
This strategic financial move allows Air T Inc to manage its cash flow more effectively during fluctuating demand periods, with current financials showing revenue of $298 million and modest growth of 3.4% year-over-year. The overline loan, which matures on October 31, 2025, carries an interest rate of either five percent or the one-month term SOFR rate, whichever is higher. The loan is secured under the terms of a Security Agreement dated August 29, 2024. InvestingPro data reveals the company maintains healthy liquidity with a current ratio of 1.9, indicating sufficient assets to cover short-term obligations.
The co-borrowers released from the revolving credit agreement are AirCo, LLC, Airco 2, LLC, AirCo Services, LLC, and Stratus Aero Partners, LLC. The decision to remove these entities from the loan obligations was based on their lack of further borrowing needs. For deeper insights into Air T’s financial health and additional key metrics, investors can access more exclusive analysis on InvestingPro, which offers over 30 additional financial metrics and insights.
The filing with the Securities and Exchange Commission also included exhibits detailing the $3 million Overline Note, the third amendment to the Credit Agreement, and the amended and restated $14 million Revolving Credit Note, all dated March 31, 2025. Tracy Kennedy, Chief Financial Officer of Air T Inc, signed the SEC report on behalf of the company, indicating the formal execution of the new financial arrangements.
The company’s management believes that this adjustment to their credit facilities will provide the necessary financial flexibility to meet operational requirements. This information is based on a press release statement. The company’s stock is currently trading near its 52-week low, with InvestingPro analysis indicating challenging profitability metrics in recent quarters.
In other recent news, Air T Inc. has secured a new term loan agreement with Bank of America, valued at $2.28 million, which will mature in February 2030. This agreement marks the termination of a previous credit arrangement, as detailed in a recent SEC filing. The loan requires monthly principal payments and carries an interest rate fixed at 5.99448% through a swap agreement. Additionally, Air T Inc. has extended its revolving credit agreement with Alerus Financial, moving the maturity date from February 2026 to August 2026. This extension, which involves twelve of its subsidiaries, retains the original terms and conditions of the agreement. The company used proceeds from the new loan to repay a previous Term Note with Alerus, highlighting a strategic financial restructuring effort. These developments reflect Air T Inc.’s ongoing financial management strategies. The recent changes provide the company with continued financial flexibility and operational support.
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