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

Rhea-AI Summary

Air T (NASDAQ:AIRT) has successfully renegotiated a financing agreement through its subsidiary AAM 24-1, LLC, significantly expanding the deal from $30M to $100M with institutional investors. The enhanced agreement provides non-recourse capital through scheduled disbursements until 2027, with final maturity in 2035. This restructuring offers increased financial flexibility and extended repayment timelines, supporting Air T's long-term capital foundation and strategic growth initiatives. The capital will be utilized to support various subsidiaries, including Crestone Air Partners, Inc., a full-service aviation asset management platform. CEO Nick Swenson emphasized this as a vote of confidence from sophisticated capital partners and a significant step toward building long-term value.

Positive

• Substantial increase in financing from $30M to $100M showing strong investor confidence
• Extended repayment timeline until 2035 providing long-term financial stability
• Non-recourse capital structure reducing company's direct liability
• Enhanced financial flexibility for strategic growth initiatives and investments

Negative

• Long-term debt commitment extending until 2035
• Dependency on scheduled disbursements through 2027 potentially limiting immediate capital access

Insights

Corporate Finance Specialist

Air T secures transformative $100M non-recourse financing, significantly expanding capital flexibility while protecting the parent company from liability.

This refinancing represents a 233% increase in available capital (from $30 million to $100 million), creating a substantial long-term foundation for Air T's growth initiatives. The structure's sophistication deserves particular attention: by channeling this through wholly-owned subsidiary AAM 24-1, LLC as non-recourse capital, Air T has effectively insulated the parent company from direct liability while maximizing financial flexibility.

The extended timeline - with commitments through 2027 and final maturity in 2035 - establishes an unusually long 10-year capital runway. This staggered disbursement approach suggests a carefully planned deployment strategy rather than addressing immediate capital needs, allowing management to execute long-term value creation without near-term financing pressure.

Two strategic elements stand out: First, the explicit mention of supporting Crestone Air Partners (their aviation asset management platform) signals this subsidiary is likely a priority growth vector. Second, the provision for both "co-investor" and "sole investor" capabilities gives Air T optionality to pursue partnerships or wholly-owned investments as opportunities arise.

The fact that existing institutional investors significantly increased their commitment suggests strong external validation of Air T's business trajectory and management execution. This recapitalization fundamentally strengthens Air T's financial foundation while maintaining strategic autonomy - a rare combination that positions the company for opportunistic growth across market cycles.

MINNEAPOLIS, MN / ACCESS Newswire / June 5, 2025 / 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 QUESTIONS

If 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 Golbus
Air T, Inc.
jgolbus@airt.net

Tori Cerda
Crestone Air Partners, Inc.
Manager, Marketing & Operations
t.cerda@crestoneairpartners.com

SOURCE: Air T, Inc.

View the original press release on ACCESS Newswire

FAQ

What is the size of Air T's (AIRT) new financing agreement?

Air T's new financing agreement is $100 million, increased from the previous $30 million arrangement with institutional investors.

When does Air T's (AIRT) new financing agreement mature?

The financing agreement matures in 2035, with scheduled disbursements through 2027.

How will Air T (AIRT) use the new financing?

The capital will support growth initiatives of Crestone Air Partners, Inc., a full-service aviation asset management platform, and other Air T subsidiaries.

Is the new $100M financing agreement recourse or non-recourse for Air T (AIRT)?

The financing agreement provides non-recourse capital, meaning it doesn't put Air T's other assets at risk.

Which Air T (AIRT) subsidiary is directly involved in the $100M financing deal?

AAM 24-1, LLC, a wholly owned subsidiary of Air T, is directly involved in the financing agreement.