Air T (NASDAQ: AIRTP) extends Alerus credit lines into 2027-2029

Rhea-AI Filing Summary

Air T, Inc. has amended its financing arrangements with Alerus Financial, updating both its revolving credit facility and a term loan. The revolving credit commitment was increased to $20,000,000, the interest rate was reduced to 1‑month SOFR plus 1.90%, and the maturity date was extended to August 28, 2027. Financial covenants will now be tested semi‑annually in December and March, and the borrowers must provide quarterly financial statements. Term Note A was amended and restated in the principal amount of $9,188,571.40, with a revised rate of 1‑month SOFR plus 2.00% and a swap fixing the rate at 5.62% through August 15, 2029. Air T reaffirmed its guarantees and entered into an unlimited continuing guaranty related to the swap.

Insights

Credit & Capital Structure Analyst

Air T extends and modestly improves key bank financing terms.

The company and several operating subsidiaries updated their Alerus credit facilities, which shape day‑to‑day liquidity. The revolving credit line now permits up to $20,000,000 of borrowing, carries interest at 1‑month SOFR plus 1.90%, and matures on August 28, 2027. This replaces prior terms while maintaining a secured structure and removing overline note provisions.

Term Note A was amended and restated at a principal balance of $9,188,571.40, with pricing at 1‑month SOFR plus 2.00% and a swap fixing the rate at 5.62% through August 15, 2029. That swap limits future interest rate variability on this loan. Semi‑annual covenant testing and quarterly reporting formalize ongoing lender oversight. Air T’s acknowledgment and its unlimited continuing guaranty for the swap reinforce its obligations, so leverage and liquidity effects will depend on how much of the revolver and term debt are utilized over time.

8-K Event Classification

3 items: 1.01, 2.03, 9.01

3 items

Item 1.01 Entry into a Material Definitive Agreement Business

The company signed a significant contract such as a merger agreement, credit facility, or major partnership.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement Financial

The company incurred a new significant debt or off-balance-sheet obligation.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

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Accepted by SEC EDGAR 09/05/2025 - 05:12 PM Learn about SEC filing dates

FAQ

What financing changes did Air T (AIRTP) disclose in this 8-K?

Air T reported amendments to its Alerus Financial credit arrangements. The revolving credit facility was modified, including a larger commitment and new interest spread, and Term Note A was amended and restated with updated pricing and a related interest rate swap.

How large is Air Ts amended revolving credit facility with Alerus?

The amended and restated revolving credit note provides a revolving credit commitment of up to an aggregate principal amount not to exceed $20,000,000 for loans and letters of credit.

What are the new interest rates on Air Ts Alerus credit facilities?

The revolving credit facility now bears interest at 1-month SOFR plus 1.90%. Term Note A bears interest at 1-month SOFR plus 2.00%, and an interest rate swap sets a fixed rate of 5.62% on that note through August 15, 2029.

When do Air Ts Alerus facilities now mature?

The maturity date of the revolving credit facility was extended to August 28, 2027. Term Note A keeps its existing maturity date of August 15, 2029.

What is the size of Air Ts amended Term Note A with Alerus?

Term Note A was amended and restated on September 3, 2025 in the principal amount of $9,188,571.40, with all other key terms set out in the amended note.

Did Air T provide any guarantees related to the amended Alerus agreements?

Yes. Air T, as guarantor, acknowledged and agreed to the revised credit agreement and amended Term Note A, reaffirmed its guarantees and pledges, and entered into an Unlimited Continuing Guaranty (Swap Transaction) in favor of Alerus.

How will financial covenants and reporting work under the amended Alerus revolver?

Financial covenants are to be measured semi-annually at December and March each year, and the borrowers must deliver quarterly financial statements to Alerus under the amended revolving credit agreement.

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______________________________________________________________________________

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549  

______________________________________________________________________________

FORM 8-K 

______________________________________________________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): September 03, 2025

______________________________________________________________________________

AIR T, INC.

(Exact Name of Registrant as Specified in Charter)  

______________________________________________________________________________

Delaware

001-35476

52-1206400

(State or Other Jurisdiction of Incorporation)

(Commission File Number)

(I.R.S. Employer Identification No.)

11020 David Taylor Drive, Suite 305,

Charlotte, North Carolina 28262

(Address of Principal Executive Offices, and Zip Code)

________________(980) 595-2840__________________

Registrant’s Telephone Number, Including Area Code

Not applicable___

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐			Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐			Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Common Stock			AIRT			NASDAQ Capital Market
Alpha Income Preferred Securities (also referred to as 8% Cumulative Capital Securities) (“AIP”)			AIRTP			NASDAQ Global Market

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

			Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
☐			Emerging growth company
☐			If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Item 1.01 Entry into a Material Definitive Agreement

On September 3, 2025, Air’Zona Aircraft Services, Inc., CSA Air, Inc., Global Ground Support, LLC, Jet Yard, LLC, Jet Yard Solutions, LLC, Mountain Air Cargo, Inc., Royal Aircraft Services, LLC, Worldwide Aircraft Services, Inc., and Worthington Aviation, LLC (the “Borrowers”) and Air T, Inc. (the “Guarantor”) entered into a number of agreements with Alerus Financial, National Association (“Alerus”) relating to the Alerus Revolving Credit Financing and Term Note A.

The transactions included the following:

(i)Amendment No. 5 to Credit Agreement (“Amendment No. 5”) and Amended and Restated Revolving Credit Note. The Borrowers and Alerus entered into Amendment No. 5 to the revolving credit agreement and an Amended and Restated Revolving Credit Note. The principal changes of the amendments include the following:

1.The interest rate was decreased to 1-month SOFR plus 1.90%;

2.The maturity date was extended to August 28, 2027;

3.The revolving credit commitment to make revolving credit loans and to issue letters of credit was increased to an aggregate principal amount not to exceed $20,000,000;

4.The financial covenants are to be measured semi-annually at December and March of each year and the Borrowers are to deliver quarterly financial statements to Alerus; and,

5.The overline note provisions and note have been eliminated.

i.Amended and Restated Term Note A and Swap Arrangement. Term Note A was amended and restated on September 3, 2025 by the Borrowers in the principal amount of $9,188,571.40. The maturity date remains August 15, 2029. The amended and restated note interest rate was revised to 1-month SOFR plus 2.00% and the Borrowers entered into a swap arrangement through the termination date of August 15, 2029 with respect to the amended and restated note. The fixed rate following the swap arrangement is 5.62%.

i.The revolving credit agreement and note remain secured by the terms of Security Agreement dated as of August 29, 2024 and the Guarantor acknowledged and agreed to the revisions of the credit agreement and amended and restated Term Note A and reaffirmed its guarantees and pledges. The Guarantor also entered into an Unlimited Continuing Guaranty (Swap Transaction). The Amendment, Amended and Restated Term Note A and related documents are effective as of September 3, 2025.

The foregoing summary of the terms of the Amendment No. 5 and Amended and Restated Term Note A and related documents are qualified in their entirety by reference to the Amended and Restated Revolving Credit Note, Amendment No. 5, Amended and Restated Term Note A, Acknowledgment and Agreement of Air T and the Unlimited Continuing Guaranty (Swap Transaction) of Air T filed as Exhibits 10.1, 10.2, 10.3, 10.4 and 10.5 herewith, which are incorporated herein by reference.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

To the extent required by Item 2.03 of Form 8-K, the information contained in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.

Item 9.01 Financial Statements and Exhibits

10.1			Amended and Restated Revolving Credit Note of the Borrowers in the amount of $20,000,000 to Alerus Financial, National Association dated as of September 3, 2025
10.2			Amendment No. 5 to Credit Agreement by and among Air’Zona Aircraft Services, Inc., CSA Air, Inc., Global Ground Support, LLC, Jet Yard, LLC, Jet Yard Solutions, LLC, Mountain Air Cargo, Inc., Worldwide Aircraft Services, Inc., Royal Aircraft Services, LLC and Worthington Aviation, LLC, Air T, Inc. and Alerus Financial, National Association effective as of September 3, 2025.
10.3			Amended and Restated Term Note A in the amount of $9,188,571.40 to Alerus Financial, National Association dated as of September 3, 2025.
10.4			Acknowledgment and Agreement of Air T, Inc. as to Amendment No. 5 to Credit Agreement dated September 3, 2025.
10.5			Unlimited Continuing Guaranty (Swap Transaction) of Air T, Inc. to and for the benefit of Alerus Financial, National Association entered into as of September 3, 2025.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: September 5, 2025

AIR T, INC.

By: /s/ Tracy Kennedy

Tracy Kennedy, Chief Financial Officer