Madison Air cuts interest margin on term loan
Madison Air Solutions Corporation disclosed that its subsidiary Madison IAQ LLC entered into a Seventh Amendment to its existing Credit and Guaranty Agreement with Wells Fargo Bank.
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Form Type
8-K
Rhea-AI Filing Summary
Madison Air Solutions Corporation disclosed that its subsidiary Madison IAQ LLC entered into a Seventh Amendment to its existing Credit and Guaranty Agreement with Wells Fargo Bank. The amendment lowers the interest rate on the incremental term loan facility from Term SOFR plus an applicable margin of 2.75% to Term SOFR plus an applicable margin of 1.75%.
Other terms of the credit agreement remain materially unchanged, and borrowings continue to be governed by the existing covenants and restrictions. The amendment is documented in the Seventh Amendment to Credit and Guaranty Agreement, dated June 4, 2026, filed as an exhibit.
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, or exhibit attachments filed with this report.
Key Figures
Previous interest margin: Term SOFR + 2.75%
New interest margin: Term SOFR + 1.75%
Amendment date: June 4, 2026
3 metrics
Previous interest margin
Term SOFR + 2.75%
Incremental term loan facility before Seventh Amendment
New interest margin
Term SOFR + 1.75%
Incremental term loan facility after Seventh Amendment on June 4, 2026
Amendment date
June 4, 2026
Date of Seventh Amendment to Credit and Guaranty Agreement
Key Terms
Material Definitive Agreement, Term Secured Overnight Financing Rate, Credit and Guaranty Agreement, Emerging growth company
4 terms
Material Definitive Agreement regulatory
"Item 1.01 Entry into a Material Definitive Agreement."
A material definitive agreement is a legally binding contract that creates major, long‑term obligations or rights for a company, such as loans, asset sales, mergers, or supplier deals. Think of it like a mortgage or lease for a business: it can change future cash flow, risk and control, so investors watch these agreements closely because they can materially affect a company’s value, financial health and stock price.
Term Secured Overnight Financing Rate financial
"reduced the interest rate from Term Secured Overnight Financing Rate"
Term secured overnight financing rate (Term SOFR) is a forward-looking interest rate that estimates the expected average cost of borrowing cash for a specified future period (for example, one or three months) using overnight, collateralized repurchase (repo) transactions backed by U.S. Treasury securities. Unlike the overnight SOFR, which reflects actual transactions that settled that day, Term SOFR is derived from derivatives and market-implied forward rates to produce a single quoted rate for the upcoming term and is used in contracts that require a known rate at the start of the period rather than a rate compounded in arrears.
Credit and Guaranty Agreement financial
"Seventh Amendment to Credit and Guaranty Agreement, dated as of June 4, 2026"
A credit and guaranty agreement is a contract that sets out the terms of a loan or credit line and names one or more parties who promise to back the borrower’s obligations, like a co-signer on a car loan. It spells out repayment rules, interest, collateral, and remedies if payments stop, so investors use it to judge how risky a company’s debt is and who would be on the hook if the borrower defaults.
Emerging growth company regulatory
"Emerging growth company | |"
An emerging growth company is a recently public or smaller public firm that qualifies for temporary, lighter regulatory and disclosure rules to reduce the cost and effort of being public. For investors, it means the company may provide less historical financial detail and face fewer reporting requirements than larger firms, so it can grow more quickly but also carries higher uncertainty—like buying a promising early-stage product with fewer user reviews.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What did Madison Air Solutions (MAIR) change in its credit agreement?
Madison Air Solutions amended its Credit and Guaranty Agreement to adjust pricing on its incremental term loan facility. The Seventh Amendment focuses on reducing the interest margin while leaving other key terms and covenants materially unchanged.
How did the interest rate change for Madison Air Solutions’ term loan?
The applicable margin on Madison Air’s incremental term loan was reduced from Term SOFR plus 2.75% to Term SOFR plus 1.75%. This lowers the company’s borrowing cost on that facility under the existing credit agreement structure.
Which subsidiary of MAIR is the borrower under the amended credit facility?
Madison IAQ LLC, a wholly owned indirect subsidiary of Madison Air Solutions, is the borrower. Madison IAQ II LLC and certain other subsidiaries act as guarantors under the amended Credit and Guaranty Agreement with Wells Fargo Bank as administrative agent.
Who is the administrative agent for Madison Air Solutions’ amended credit agreement?
Wells Fargo Bank, National Association serves as administrative agent under the Credit and Guaranty Agreement. It is also the administrative agent for the newly executed Seventh Amendment that adjusts the interest margin on the incremental term loan facility.
Did the Seventh Amendment change other key terms or covenants for MAIR?
The company stated that other terms of the Credit and Guaranty Agreement remain materially unchanged. Borrowings continue to be subject to the same covenants and restrictions that applied before the Seventh Amendment was executed on June 4, 2026.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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