Air T Amends Credit Agreement to Increase Revolving Credit Commitment to $25 Million

On September 1, 2026, Air T, Inc. and its subsidiaries entered into Amendment No. 7 to their Credit Agreement with Alerus Financial, National Association. The amendment, effective upon satisfaction of specified conditions, terminates a temporary overline commitment established by a prior amendment and increases the revolving credit commitment from $20.0 million to $25.0 million. The revolving credit facility now terminates on August 27, 2029.

The amendment revises the borrowing base formula, allowing for 85% eligibility on investment-grade accounts, 80% on other eligible accounts, 50% on eligible inventory, and 40% on eligible work-in-process inventory. Inventory and work-in-process combined are limited to 75% of the total borrowing base. Additionally, the agreement includes an accordion option, permitting the borrowers to request an additional revolving commitment of up to $3.5 million for a 120-day period during each fiscal year, provided they pay a 0.50% origination fee and maintain compliance with financial covenants.

In connection with the amendment, the company executed an Amended and Restated Revolving Credit Note in the principal amount of $25.0 million and a Consolidated Term Note in the amount of $11.46 million. The Consolidated Term Note consolidates the outstanding balances of Term Loan A, Term Loan C, and overline loans. Under this note, principal is payable monthly in installments of $95,500 through August 15, 2029, and $119,375 thereafter through August 15, 2031, with the remaining balance due on August 27, 2031.

Interest rates for both the Revolving Note and the Consolidated Term Note are set at the greater of 5.00% and CME one-month term SOFR plus a leverage-based applicable margin. The applicable margin is initially 2.50% and ranges from 2.25% to 2.75% based on the borrowers' leverage ratio. The agreement also imposes a 0.25% annual unused commitment fee on the revolving credit facility and a leverage ratio cap of 3.00 to 1.00. Global Ground Support, LLC executed a Federal Assignment of Claims Agreement regarding specified receivables under a U.S. Air Force contract, which Alerus may deliver to federal authorities upon an event of default.