Air Industries Group Secures Expansion of Term Loan from Webster Bank
Air Industries Group (NYSE American: AIRI) announced that Webster Bank has amended its Credit Facility terms, including covenant relaxation and permission for subordinated debt repayment. The bank expanded AIRI's Term Loan by approximately $1.6 million, which will be used toward purchasing new state-of-the-art machinery worth $1.9 million.
The new equipment investment will support AIRI's recently announced $33 million contract and aims to double production capacity for CH-53K heavy lift helicopter components. The current loan facility with Webster Bank matures at the end of this year, with extension negotiations scheduled to begin in the second quarter after the Form 10-K filing.
Air Industries Group (NYSE American: AIRI) ha annunciato che la Webster Bank ha modificato i termini del suo Credito, inclusa la rilassamento dei vincoli e il permesso per il rimborso di debito subordinato. La banca ha ampliato il Prestito a Termine di AIRI di circa 1,6 milioni di dollari, che verrà utilizzato per l'acquisto di nuova macchina all'avanguardia del valore di 1,9 milioni di dollari.
L'investimento in nuove attrezzature supporterà il recentemente annunciato contratto da 33 milioni di dollari di AIRI e mira a raddoppiare la capacità di produzione per i componenti dell'elicottero CH-53K heavy lift. L'attuale linea di credito con la Webster Bank scade alla fine di quest'anno, con negoziazioni di estensione programmate per iniziare nel secondo trimestre dopo la presentazione del modulo 10-K.
Air Industries Group (NYSE American: AIRI) anunció que Webster Bank ha modificado los términos de su Línea de Crédito, incluyendo la flexibilización de convenios y el permiso para el reembolso de deudas subordinadas. El banco amplió el Préstamo a Plazo de AIRI en aproximadamente 1.6 millones de dólares, que se utilizarán para la compra de nueva maquinaria de última generación por un valor de 1.9 millones de dólares.
La inversión en el nuevo equipo apoyará el contrato de 33 millones de dólares recientemente anunciado por AIRI y tiene como objetivo duplicar la capacidad de producción de componentes para el helicóptero CH-53K de carga pesada. La línea de crédito actual con Webster Bank vence a finales de este año, con negociaciones de extensión programadas para comenzar en el segundo trimestre después de la presentación del Formulario 10-K.
Air Industries Group (NYSE American: AIRI)는 Webster Bank가 신용 시설 조건을 수정했으며, 이에는 약정 완화 및 후순위 채무 상환 허가가 포함된다고 발표했습니다. 은행은 AIRI의 기간 대출을 약 160만 달러 확대했으며, 이는 190만 달러 상당의 최신 기계 구매에 사용될 것입니다.
새로운 장비 투자는 AIRI가 최근 발표한 3300만 달러 계약을 지원하며, CH-53K 중량 이착륙 헬리콥터 부품의 생산 능력을 두 배로 늘리는 것을 목표로 하고 있습니다. 현재 Webster Bank와의 대출 시설은 올해 말 만료되며, 10-K 양식 제출 후 두 번째 분기부터 연장 협상이 시작될 예정입니다.
Air Industries Group (NYSE American: AIRI) a annoncé que la Webster Bank a modifié les termes de sa ligne de crédit, y compris l'assouplissement des covenants et la permission de remboursement de la dette subordonnée. La banque a augmenté le prêt à terme d'AIRI d'environ 1,6 million de dollars, qui sera utilisé pour l'achat de nouvelles machines de pointe d'une valeur de 1,9 million de dollars.
Cet investissement dans de nouveaux équipements soutiendra le contrat de 33 millions de dollars récemment annoncé par AIRI et vise à doubler la capacité de production des composants de l'hélicoptère de transport lourd CH-53K. L'actuelle ligne de crédit avec la Webster Bank arrivera à échéance à la fin de cette année, avec des négociations d'extension prévues pour commencer au deuxième trimestre après le dépôt du formulaire 10-K.
Air Industries Group (NYSE American: AIRI) hat bekanntgegeben, dass die Webster Bank die Bedingungen ihres Kreditrahmens geändert hat, einschließlich der Lockerung von Vereinbarungen und der Genehmigung zur Rückzahlung nachrangiger Schulden. Die Bank hat AIRIs Terminkredit um etwa 1,6 Millionen Dollar erhöht, der für den Kauf neuer hochmoderner Maschinen im Wert von 1,9 Millionen Dollar verwendet werden soll.
Die Investition in neue Geräte unterstützt den kürzlich angekündigten 33-Millionen-Dollar-Vertrag von AIRI und zielt darauf ab, die Produktionskapazität für Komponenten des CH-53K Schwerlasthelikopters zu verdoppeln. Der aktuelle Kreditrahmen mit der Webster Bank läuft Ende dieses Jahres aus, und Verhandlungen über eine Verlängerung sind für das zweite Quartal nach der Einreichung des Formulars 10-K geplant.
- Secured $1.6 million term loan expansion for equipment investment
- Bank relaxed credit facility covenants
- New machinery will double production capacity for CH-53K components
- Equipment investment supports recently secured $33 million contract
- Current loan facility expires end of year, requiring renegotiation
- Company requires external financing for equipment purchases
Insights
The amended credit facility represents a strategic financial move that strengthens Air Industries' operational capabilities and banking relationship. The $1.6 million term loan expansion, coupled with relaxed covenants, signals Webster Bank's confidence in AIRI's business trajectory and financial health. This is particularly noteworthy for a small-cap company with a market cap of
The investment in duplicating an existing production cell demonstrates astute capital allocation. By leveraging proven manufacturing processes, AIRI minimizes operational risks while expanding capacity to service the $33 million contract for CH-53K helicopter components. The expected doubling of production capacity should drive operational leverage, potentially improving margins and cash flow generation.
The relaxation of covenants and permission for subordinated debt repayment indicates improved financial flexibility and potential deleveraging opportunities. This could lead to reduced interest expenses and a stronger balance sheet. The timing of loan facility extension negotiations in Q2, following the 10-K filing, suggests management's confidence in presenting strong fiscal performance to support favorable refinancing terms.
The strategic importance of this financing goes beyond the dollar amount - it positions AIRI to efficiently execute on its backlog while maintaining financial stability. The investment in automation and advanced manufacturing capabilities should enhance competitive positioning in the aerospace and defense supply chain, particularly important given the increasing demand for precision components in military aircraft programs.
Lou Melluzzo, Chief Executive Officer of Air Industries Group, commented: “Webster Bank has been our primary lender and a vital partner to Air Industries for five years. This increase in our equipment term loan facilitates the purchase of two new state of the art machines to expand the production of components for the CH-53K heavy lift helicopter. These new machines will duplicate an existing production cell, doubling the production capacity for these products.
“Our loan facility with
ABOUT AIR INDUSTRIES GROUP
Air Industries Group is a leading manufacturer of precision components and assemblies for large aerospace and defense prime contractors. Its products include landing gears, flight controls, engine mounts and components for aircraft jet engines, ground turbines and other complex machines. Whether it is a small individual component or complete assembly, its high quality and extremely reliable products are used in mission critical operations that are essential for the safety of military personnel and civilians.
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.
NON-GAAP FINANCIAL MEASURES
The Company uses Adjusted EBITDA, a Non-GAAP financial measure as defined by the SEC, as a supplemental profitability measure because management finds it useful to understand and evaluate results, excluding the impact of non-cash depreciation and amortization charges, stock based compensation expenses, and nonrecurring expenses and outlays, prior to consideration of the impact of other potential sources and uses of cash, such as working capital items. This calculation may differ in method of calculation from similarly titled measures used by other companies and may be different than the EBITDA calculation used by our lenders for purposes of determining compliance with our financial covenants. This Non-GAAP measure may have limitations when understanding performance as it excludes the financial impact of transactions such as interest expense necessary to conduct the Company’s business and therefore are not intended to be an alternative to financial measure prepared in accordance with GAAP. The Company has not quantitatively reconciled its forward looking Adjusted EBITDA target to the most directly comparable GAAP measure because items such as amortization of stock-based compensation and interest expense, which are specific items that impact these measures, have not yet occurred, are out of the Company’s control, or cannot be predicted. For example, quantification of stock-based compensation is not possible as it requires inputs such as future grants and stock prices which are not currently ascertainable.
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Air Industries Group
Chief Financial Officer
631-328-7039
Source: Air Industries Group
FAQ
How much did Webster Bank increase AIRI's term loan by in 2024?
What will AIRI use the new $1.6 million term loan for?
When does AIRI's current Webster Bank loan facility mature?
How will the new machinery impact AIRI's production capacity?
What is the value of the contract that the new AIRI equipment investment will support?
