Air T, Inc. Announces Intent to Raise Additional Capital Through Trust Preferred Securities

Rhea-AI Summary

Air T (NASDAQ:AIRT) announced on February 13, 2026 its intent to raise additional capital by offering its outstanding trust preferred security, Alpha Income Preferred Securities (NASDAQ:AIRTP), via an at-the-market (ATM) facility and through private placements.

The company cited plans to fund expansion of its Commercial Aircraft Engine and Parts segment and to support an existing investee while preserving balance sheet flexibility. Air T's shelf registration operates under the SEC "baby shelf" rules for issuers with a public float below $75 million, limiting sales over any 12-month period and enabling incremental capital access.

Positive

• ATM facility enables incremental capital access
• Uses AIRTP trust preferred to diversify funding sources
• Shelf registration under baby shelf for quicker offerings

Negative

• Baby shelf rules impose a 12-month sale limit on offerings
• Issuing preferred securities may dilute common holders depending on issuance size

News Market Reaction – AIRTP

-1.38%

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-1.38% News Effect

On the day this news was published, AIRTP declined 1.38%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

MINNEAPOLIS, MINNESOTA / ACCESS Newswire / February 13, 2026 / Air T, Inc. (NASDAQ:AIRT) today announced its intention to raise additional capital through the company's outstanding trust preferred security, the Alpha Income Preferred Securities (NASDAQ:AIRTP), issued by Air T Funding and guaranteed by Air T, Inc. The company plans to access capital periodically and opportunistically through its at-the-market ("ATM") facility, allowing Air T to raise funds efficiently as strategic opportunities arise.

In addition to the ATM program, the Company may also offer the same Alpha Income Preferred Securities through privately negotiated placements with institutional investors when such transactions align with its capital strategy.

Strategic Rationale

Air T is currently evaluating several high-potential initiatives, including the expansion of its Commercial Aircraft Engine and Parts segment and deploying additional capital to support one of its existing investees. Preserving balance sheet flexibility remains a central priority as the company continues to pursue disciplined growth.

"We are excited about the opportunities immediately in front of us and want to ensure we can take decisive action when the timing is right," said Tracy Kennedy, Air T's CFO. "The flexibility afforded by our trust preferred security and our ATM program provides us with an efficient path to raise capital while remaining thoughtful about dilution and cost of capital. These tools position us to move quickly on initiatives we believe will drive meaningful long-term value for shareholders."

Shelf Registration Framework

The company's shelf registration statement operates under the SEC's "baby shelf" provisions, applicable to issuers with a public float below $75 million. Under these rules, eligible issuers may use Form S-3 to conduct primary offerings but are limited in the amount of securities they may sell under the shelf during any 12-month period. This structure allows smaller public companies to move quickly in the capital markets while maintaining guardrails designed to protect investors and ensure appropriate disclosures.

This framework enables Air T to raise capital incrementally, matching capital deployment to strategic timing rather than relying on large, infrequent offerings.

Commitment to Long-Term Growth

Air T remains committed to growing the value of its diversified portfolio of operating companies and investments. By utilizing the flexibility of its trust preferred security, the Company believes it can continue to seize opportunities that align with its long-term objectives while maintaining prudent financial discipline.

About Air T, Inc.

Air T, Inc. (NASDAQ:AIRT) is a diversified holding company that operates through a portfolio of businesses spanning aviation services, commercial aircraft engines and parts, and other strategic investments. The Company is headquartered in Minneapolis, Minnesota. For more information, visit www.airt.net.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and beliefs and are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those described in the forward-looking statements. Words such as "intends," "plans," "expects," "believes," "anticipates," "evaluating," and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements regarding the Company's plans to raise capital, the anticipated use of proceeds, and the pursuit of strategic opportunities. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, among others, market conditions, the Company's ability to identify and execute on strategic opportunities, general economic conditions, and other risk factors described in the Company's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

Investor Contact:

Tracy Kennedy, Chief Financial Officer
tkennedy@airt.com

Katrina Philp, Chief of Staff
kphilp@airt.com

SOURCE: Air T, Inc.

View the original press release on ACCESS Newswire

FAQ

What did Air T (AIRT) announce on February 13, 2026 about raising capital?

Air T announced intent to raise capital via its trust preferred AIRTP using an ATM facility and private placements. According to the company, proceeds may fund Commercial Aircraft Engine and Parts expansion and support an existing investee while maintaining balance sheet flexibility.

How does the ATM facility work for Air T (AIRT) and AIRTP securities?

An ATM allows periodic, opportunistic sales of AIRTP into the market rather than a single large offering. According to the company, this lets Air T raise funds efficiently and match capital deployment to strategic timing while managing dilution and cost of capital.

What limits apply to Air T's shelf registration under the SEC baby shelf rules?

Air T's shelf operates under baby shelf rules for issuers with public float below $75 million, which restrict the amount of securities sold in any 12-month period. According to the company, this framework enables quicker access but includes guardrails to protect investors.

What will Air T (AIRT) use proceeds from AIRTP offerings for?

Proceeds are intended to support expansion of the Commercial Aircraft Engine and Parts segment and to deploy capital to an existing investee. According to the company, these uses aim to preserve flexibility and pursue disciplined growth opportunities.

Will Air T (AIRT) use private placements for AIRTP securities and why?

Yes, Air T may offer AIRTP via privately negotiated placements with institutional investors when aligned with strategy. According to the company, private placements complement the ATM to access capital while considering investor terms and timing.