Air Industries Group Announces Expansion and Extension of Credit Facility

Rhea-AI Summary

Air Industries Group (AIRI) announced an expansion of its credit facilities with Sterling National Bank, increasing the revolving credit facility limit by 25%, now totaling $20 million. The maturity dates for both the revolving credit and term loan have been extended to December 31, 2025. Additionally, the bank will permit partial amortization of subordinated debt, reducing interest expenses and boosting net income. CEO Lou Melluzzo highlighted this as a strong vote of confidence in the company’s growth prospects, ensuring adequate liquidity for anticipated revenue increases.

Positive

• Increased revolving credit facility limit from $16 million to $20 million.
• Maturity dates extended to December 31, 2025, providing long-term financial security.
• Partial amortization of subordinated debt will reduce interest expenses and enhance net income.

Negative

• None.

BAY SHORE, N.Y.--(BUSINESS WIRE)-- Air Industries Group (NYSE AMEX: AIRI):

Air Industries Group (“Air Industries” or the “Company”), an integrated manufacturer of precision assemblies and components for leading aerospace and defense prime contractors, today announced that Sterling National Bank (“Sterling National”) has agreed to expand the size of and extend the maturity of its Revolving Credit Facility and Term Loan.

The revolving credit facility increased by 25%, or $4 million, from its current $16 million limit to $20 million. The inventory sublimit of the revolving credit facility also increased by $3 million, to $14 million.

The maturity dates of both the revolving credit facility and term loan have been extended by three years, from December 31, 2022 to December 31, 2025.

Sterling National has also agreed, subject to certain limitations, to allow Air Industries to begin amortizing part of its subordinated debt. Reducing the Company’s subordinated debt will reduce interest expense and increase net income.

Mr. Lou Melluzzo, CEO of Air Industries, commented: “Sterling National Bank’s actions are a strong vote of confidence in our Company and its prospects for the future. Sterling National became our bank on January 1, 2020, and has been supportive of Air Industries throughout all the challenges of the pandemic. Late last year Sterling National increased our term loan, enabling us to complete our significant investment in new equipment and machinery.

“We are very pleased with the expansion of our credit facility and are confident that it will allow sufficient liquidity for our anticipated continued growth of revenues and profits. The extension of the maturity to year-end 2025 – more than four-years away – is very reassuring.”

ABOUT AIR INDUSTRIES GROUP

Air Industries Group (AIRI) is an integrated manufacturer of precision equipment assemblies and components for leading aerospace and defense prime contractors. Additional information about the Company can be found in its filings with the SEC.

Forward Looking Statements

Certain matters discussed in this press release are 'forward-looking statements' intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. In particular, the Company's statements regarding trends in the marketplace, future revenues, earnings and Adjusted EBITDA, the ability to realize firm backlog and projected backlog, cost cutting measures, potential future results and acquisitions, are examples of such forward-looking statements. The forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, the timing of projects due to variability in size, scope and duration, the inherent discrepancy in actual results from estimates, projections and forecasts made by management, regulatory delays, changes in government funding and budgets, and other factors, including general economic conditions, not within the Company's control. The factors discussed herein and expressed from time to time in the Company's filings with the Securities and Exchange Commission could cause actual results and developments to be materially different from those expressed in or implied by such statements. The forward-looking statements are made only as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211129005722/en/

Air Industries Group

Investor Relations

Michael Recca - CFO

631.328.7079

ir@airindustriesgroup.com

Source: Air Industries Group

FAQ

What recent financial changes did Air Industries Group announce?

Air Industries Group announced an increase in its revolving credit facility limit to $20 million and an extension of its term loan maturity to December 31, 2025.

How much was the increase in Air Industries Group's revolving credit facility?

The revolving credit facility was increased by 25%, which amounts to $4 million, raising the limit from $16 million to $20 million.

What benefit will partial amortization of subordinated debt provide to Air Industries Group?

Partial amortization of subordinated debt will reduce interest expenses and increase net income for Air Industries Group.

What did the CEO of Air Industries Group say about the new credit facility?

CEO Lou Melluzzo stated that the expansion of the credit facility is a strong vote of confidence in the company and will support its liquidity for future growth.