Air Industries Group Announces Expanded Term Loan for Growth
Expansion of Term Loan by Air Industries Group
Air Industries Group (“Air Industries”) (NYSE American: AIRI), renowned for its manufacturing of precision components and assemblies for major aerospace and defense contractors, has undertaken significant financial maneuvers to boost its operational capabilities. Recently, their primary lender, Webster Bank, amended the terms of their Credit Facility, providing enhanced financial support to the company.
Details of the Loan Amendment
The updated loan agreement consists of a relaxation of the required covenants and permission for the repayment of subordinated debt. Furthermore, it expands the company’s Term Loan by approximately $1.6 million. These additional funds are earmarked for the acquisition of new state-of-the-art machinery, which totals roughly $1.9 million. This heavy investment aims at improving production efficiency in response to a recently acquired contract worth $33 million.
Strategic Investments for Future Growth
Lou Melluzzo, the Chief Executive Officer of Air Industries, emphasized the importance of the partnership with Webster Bank in fostering growth. He stated that the funding allows for the purchase of two new machines designed specifically for producing components used in the CH-53K heavy lift helicopter. This advancement is expected to duplicate an existing production cell, effectively doubling manufacturing capacity for these critical components.
Negotiating an Extension
As the current loan facility approaches maturity by year-end, the company is preparing for negotiations to extend the facility. These discussions are set to commence in the second quarter following the filing of the Form 10-K. With a positive history with Webster Bank, Melluzzo expresses confidence in successfully securing an extension.
About Air Industries Group
Air Industries Group stands out in the defense and aerospace industry as a leading manufacturer of high-quality precision components and assemblies. Their products range from landing gears and flight controls to engine mounts and parts for aircraft jet engines and ground turbines. With a firm commitment to delivering reliable products, Air Industries plays a vital role in mission-critical operations essential for the safety of both military personnel and civilians.
Understanding Financial Health
The company’s financial strategies include the use of Adjusted EBITDA, a significant Non-GAAP measure utilized to evaluate profitability while excluding non-cash charges and one-time expenses. This approach helps in assessing the company's operational performance without the financial noise of external factors affecting cash flow. It’s crucial to understand that this measure might differ among companies, and hence should not replace conventional GAAP metrics.
Contact Information
For further inquiries or to learn more about Air Industries Group, interested parties are encouraged to visit their official website for additional details and contact options.
Frequently Asked Questions
1. What is the main purpose of the loan secured by Air Industries Group?
The loan is primarily intended for purchasing new machinery to enhance production capabilities.
2. How will the new machinery impact manufacturing?
The new machinery will double the production capacity for components used in the CH-53K helicopter.
3. When are negotiations for extending the loan facility expected to begin?
Negotiations are anticipated to start in the second quarter after the Form 10-K is filed.
4. What products does Air Industries Group manufacture?
They manufacture precision components like landing gears, flight controls, and engine mounts for aerospace and defense applications.
5. What financial measure does Air Industries Group use to assess profitability?
The company employs Adjusted EBITDA to evaluate operational performance while removing the effects of non-cash charges and nonrecurring expenses.
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