Air Industries Group, a leading manufacturer of precision components and assemblies for large aerospace and defense prime contractors, reached an agreement with Webster Bank, its primary lender to amend the Company’s Current Credit Facility.
The modified Credit Facility provides for the following:
- A waiver of the failure to achieve the fixed charge coverage ratio for the period ended March 31, 2024,
- A reduction in certain financial covenant metrics for the balance of calendar 2024 and the first calendar quarter of 2025,
- An advance under the term loan of $1 million to be used for capital expenditures and a reduction in annual amortization of the principal of the term loan by approximately $135,000. The increase in term loan was offset, in part, by a modification in the availability formula under the revolving credit line.
“I am pleased that we reached this agreement with our lender,” said Lou Melluzzo, CEO of Air Industries Group. “I am confident that fiscal 2024 is on track to be a year of growth. I believe our modified agreement provides us sufficient flexibility and liquidity to support our strategic plan. The amendment to our Current Credit Facility will be filed with the Securities Exchange Commission.”