Air T expands Alerus revolving line to $25 million, extends facility through 2029
Amendment No. 7 to the Alerus Credit Agreement, effective September 1, gives $AIRT a $25.0 million revolving commitment, up from $20.0 million, and extends the facility to August 27, 2029. Nine Air T subsidiaries and affiliates signed as borrowers alongside the parent, which acts as loan party agent and guarantor. The full documentation is filed as exhibits to the September 4 Form 8-K.
Key takeaways
- Amendment No. 7 to the Alerus Credit Agreement, effective September 1, increased Air T's ($AIRT) revolving commitment to $25.0 million from $20.0 million and extended the facility to August 27, 2029.
- The amendment consolidated Term Loan A, Term Loan C, and outstanding overline balances into a single Consolidated Term Note of $11.46 million and retired the temporary overline from Amendment No. 6.
- The revolving facility carries a floating rate of the greater of 5.00% or CME one-month term SOFR plus a margin ranging from 2.25% to 2.75% based on the borrowers' leverage ratio.
- Nine Air T subsidiaries and affiliates signed as borrowers alongside the parent, with the borrowing base tied to eligible accounts and inventory levels and a leverage covenant ceiling of 3.00 to 1.00.
- The full documentation was filed as exhibits to Air T's September 4 Form 8-K.
Amendment No. 7 to the Alerus Credit Agreement, effective September 1, gives $AIRT a $25.0 million revolving commitment, up from $20.0 million, and extends the facility to August 27, 2029. Nine Air T subsidiaries and affiliates signed as borrowers alongside the parent, which acts as loan party agent and guarantor. The full documentation is filed as exhibits to the September 4 Form 8-K.
Borrowing base and operational mechanics
The revised borrowing base ties available credit directly to inventory levels and receivables quality across the Air T subsidiary network. Alerus Financial, National Association is now lending against 85% of eligible investment-grade accounts, 80% of other eligible accounts, 50% of eligible inventory, and 40% of eligible work-in-process inventory. Inventory and work-in-process together are capped at 75% of the total borrowing base, meaning throughput at Mountain Air Cargo, Inc., Global Ground Support, LLC, Jet Yard, LLC, Jet Yard Solutions, LLC, and the other Alerus Borrowers directly sets the ceiling on available capacity.
Amendment No. 7 also retires the temporary overline established by Amendment No. 6 and consolidates Term Loan A, Term Loan C, and outstanding overline balances into a Consolidated Term Note of $11.46 million. Monthly principal runs at $95,500 through August 15, 2029, then steps to $119,375 through August 15, 2031, with the remaining balance due August 27, 2031.
Borrowings under the revolving facility and any accordion note carry a floating rate equal to the greater of 5.00% or CME one-month term SOFR plus an applicable margin that opens at 2.50% and can range from 2.25% to 2.75% based on the Alerus Borrowers' leverage ratio. The Consolidated Term Note carries the same SOFR-plus-margin structure. A 0.25% annual unused commitment fee applies to undrawn revolving capacity, and the amendment sets a leverage covenant ceiling of 3.00 to 1.00.
What to watch
An accordion option allows the Alerus Borrowers to request up to $3.5 million in additional revolving capacity for one 120-day period per fiscal year, subject to a 0.50% origination fee and pro forma covenant compliance. Any amounts drawn under that window must be repaid before the period closes.
Global Ground Support, LLC also executed a Federal Assignment of Claims Agreement covering receivables under a U.S. Air Force contract and delivery order. Alerus may deliver that assignment to the relevant federal authorities upon an event of default, which also triggers a 500-basis-point rate increase across both notes.
Related reading
Filed by the newsroom of MarketPR on September 6, 2026. Source: sec.gov. Indicative figures are not investment advice.