Current Report Filing (8-k)
May 10 2017 - 8:05AM
Edgar (US Regulatory)
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) May 5, 2017
(Exact Name of Registrant as Specified in its Charter)
|
|
|
|
|
Delaware
|
|
001-35476
|
|
52-1206400
|
(State or Other Jurisdiction
of Incorporation)
|
|
(Commission
File Number)
|
|
(I.R.S. Employer
Identification No.)
|
3524 Airport Road
Maiden, North Carolina 28650
(Address of Principal Executive Offices) (Zip Code)
(828)
464-8741
(Registrants Telephone Number, Including Area Code)
|
Not Applicable
|
(Former name or former address, if changed from 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
communications pursuant to Rule
14d-2(b)
under the Exchange Act (17 CFR
240.14d-2(b))
|
|
☐
|
Pre-commencement
communications pursuant to Rule
13e-4(c)
under the Exchange Act (17 CFR
240.13e-4c))
|
Indicate by check mark whether the registrant is an emerging growth company as defined
in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule
12b-2
of the Securities Exchange Act of 1934
(§240.12b-2
of this
chapter).
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 2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance
Sheet Arrangement of a Registrant
On May 5, 2017, Contrail Aviation Support, LLC
(Contrail), a partially owned subsidiary of Air T, Inc. (AirT or the Company), entered into a Business Loan Agreement (the Loan Agreement) with Old National Bank. The Loan Agreement provides for
revolving credit borrowings by Contrail in an amount up to $15,000,000 and replaces the revolving credit facility that Contrail had entered into with BMO Harris Bank N.A. on July 18, 2016. Borrowings under the Loan Agreement will bear interest
at an annual rate equal to
one-month
LIBOR plus 3.00%.
The obligations of Contrail under the Loan
Agreement are secured by a first-priority security interest in substantially all of the assets of Contrail and are also guaranteed by the Company, with such guaranty limited in amount to a maximum of $1,600,000, plus interest on such amount at the
rate of interest in effect under the Loan Agreement, plus costs of collection.
The Loan Agreement contains affirmative and negative
covenants, including covenants that restrict Contrails ability to make acquisitions or investments, make certain changes to its capital structure, and engage in any business substantially different that it presently conducts. The Loan
Agreement also contains financial covenants applicable to Contrail, including maintenance of a Cash Flow Coverage Ratio of 2.0 to 1.0, a Tangible Net Worth of not less than $3,500,000, and a Debt Service Coverage Ratio of 1.1 to 1.0, as such terms
are defined in the Loan Agreement.
The Loan Agreement contains events of default including, without limitation, nonpayment of principal,
interest or other obligations, violation of covenants, if both Contrails current chief executive officer and chief financial officer cease to oversee
day-to-day
operations of Contrail, cross-default to other debt, bankruptcy and other insolvency events, actual or asserted invalidity of loan documentation, or material adverse changes in Contrails financial condition.
The foregoing summary of the terms of the Loan Agreement does not purport to be complete and is qualified in its entirety by reference to the
Loan Agreement, which is filed as Exhibit 10.1 hereto and is incorporated by reference herein.
Item 9.01 Financial Statements and Exhibits
|
|
|
Exhibit
|
|
Description
|
|
|
10.1
|
|
Business Loan Agreement dated as of May 5, 2017 between Contrail Aviation Support, LLC and Old National Bank
|
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: May 10, 2017
|
|
|
AIR T, INC.
|
|
|
By:
|
|
/s/ Candice L. Otey
|
|
|
Candice L. Otey, Vice President-
Finance,
Chief Financial Officer,
Secretary and Treasurer
|
Exhibit Index
|
|
|
Exhibit
|
|
Description
|
|
|
10.1
|
|
Business Loan Agreement dated as of May 5, 2017 between Contrail Aviation Support, LLC and Old National Bank
|
Air T (NASDAQ:AIRT)
Historical Stock Chart
From May 2024 to Jun 2024
Air T (NASDAQ:AIRT)
Historical Stock Chart
From Jun 2023 to Jun 2024