CHARLOTTE, NC / ACCESSWIRE / November 28, 2023 / Today The Company announces the completion of a private placement of $4.0 million of its 8% Trust Preferred Securities (NASDAQ:AIRTP) at a price of $17.00 per share for a 12.1% yield to maturity. This offering complements the Company's currently active program to sell up to $5.4 million of 8% Trust Preferred Securities ("TruPs") through its at-the-market offering. The principal buyers of the private placement were its largest shareholder and their affiliates. Moreover, the private placement buyers have an option to buy an additional $4.0 million at the same $17.00 per-share price.
The Company anticipates that it will more likely than not be offering additional TruPs under its at-the-market offering at the same $17.00 per share price or better, for a 12.1% or better yield to maturity.
Balancing its growth initiates and cost of capital, and in consultation with Directors and Management, the Company has concluded that its limited TruPs offerings are a prudent step at this time. Growth is funded and common equity dilution is avoided. Initiatives made possible by this nearly 30-year capital include:
- Expansion of Global Ground Support's ("GGS") balance sheet - including investment into an entirely new line of regional deicers for the 2024-2025 season.
- Investments into leases on aircraft and engine assets, including through the LP interests of its Aircraft Asset Management Joint Venture, which we believe have returns consistently outpacing the Company's cost of capital.
- Expansion of maintenance programs for the Company's recently-acquired subsidiary, Worldwide Aviation Services' numerous ATR, SAAB 340 and Embraer operators- including expansion to satisfy growing demand from a large leasing company.
- Expanding working capital needs of Mountain Air Cargo associated with adding 13 aircraft during calendar 2023 in support of its largest air cargo customer.
- Continued investment into its expanding software business, including into Ambry Hill Technologies with its recognized 'game changer' software suite for aviation parts traders, distributors and maintenance facilities.
- Funding commercial printing equipment sales growth at Delphax Solutions, Inc., which has achieved 186% year-over-year revenue growth thus far in Fiscal 2024.
NOTE REGARDING STAKEHOLDER QUESTIONS
If you have questions related to this release or other Air T matters, please use our interactive Q&A capability, through Slido.com, accessible from our website, to submit your questions. We intend to keep that link open and available for shareholder questions. Questions submitted through Slido will be answered "live" and in writing at our Annual Meeting, and via a written response on a quarterly basis. Note that legal and pragmatic requirements restrict us from answering every question posted, yet we intend to address all reasonable and relevant questions with a written answer.
ABOUT AIR T, INC.
Established in 1980, Air T Inc. is a portfolio of powerful businesses and financial assets, each of which is independent yet interrelated. Its core segments are overnight air cargo, aviation ground support equipment manufacturing and sales, commercial jet engines and parts, and corporate and other. We seek to expand, strengthen and diversify Air T's after-tax cash flow per share. Our goal is to build Air T's core businesses, and when appropriate, to expand into adjacent and other industries. We seek to activate growth and overcome challenges while delivering meaningful value for all stakeholders. For more information, visit .
FORWARD-LOOKING STATEMENTS
Certain statements in this press release, including those contained in "Overview," are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the Company's financial condition, results of operations, plans, objectives, future performance and business. Forward-looking statements include those preceded by, followed by or that include the words "believes", "pending", "future", "expects," "anticipates," "estimates," "depends" or similar expressions. These forward-looking statements involve risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements, because of, among other things, potential risks and uncertainties, such as:
- An inability to finance our operations through bank or other financing or through the sale of issuance of debt or equity securities as a result of the existence of substantial doubt about our ability to continue as a going concern;
- Economic and industry conditions in the Company's markets;
- The risk that contracts with FedEx could be terminated or adversely modified;
- The risk that the number of aircraft operated for FedEx will be reduced;
- The risk that GGS customers will defer or reduce significant orders for deicing equipment;
- The impact of any terrorist activities on United States soil or abroad;
- The Company's ability to manage its cost structure for operating expenses, or unanticipated capital requirements, and match them to shifting customer service requirements and production volume levels;
- The Company's ability to meet debt service covenants and to refinance existing debt obligations;
- The risk of injury or other damage arising from accidents involving the Company's overnight air cargo operations, equipment or parts sold and/or services provided;
- Market acceptance of the Company's commercial and military equipment and services;
- Competition from other providers of similar equipment and services;
- Changes in government regulation and technology;
- Changes in the value of marketable securities held as investments;
- Mild winter weather conditions reducing the demand for deicing equipment;
- Market acceptance and operational success of the Company's relatively new aircraft asset management business and related aircraft capital joint venture; and
- Despite our current indebtedness levels, we and our subsidiaries may still be able to incur substantially more debt, which could further exacerbate the risks associated with our substantial leverage.
A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. We are under no obligation, and we expressly disclaim any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.
CONTACT
Air T, Inc. Brian Ochocki, CFO
bochocki@airt.net
612-843-4302
SOURCE: Air T, Inc.
View source version on accesswire.com:
北卡羅來納州夏洛特/ACCESSWIRE /2023年11月28日/該公司今天宣佈完成其8%信託優先證券(納斯達克股票代碼:AIRTP)400萬美元的私募配售,價格爲每股17.00美元,到期收益率爲12.1%。此次發行補充了公司目前正在進行的計劃,即通過其市場發行出售高達540萬美元的8%信託優先證券(“TrUPs”)。私募的主要買家是其最大股東及其關聯公司。此外,私募買家可以選擇以相同的每股17.00美元的價格再購買400萬美元。
該公司預計,它很可能會在市場發行中以相同或更高的每股價格發行額外的Trups,到期收益率爲12.1%或更高。
公司平衡其增長啓動和資本成本,經與董事和管理層協商,得出結論,目前其有限的TRUPs發行是謹慎的舉措。爲增長提供了資金,避免了普通股稀釋。這筆近30年的資本使之成爲可能的舉措包括:
- 擴大全球地面支持(“GGS”)的資產負債表,包括投資2024-2025賽季的全新區域除冰劑系列。
- 對飛機和發動機資產租賃的投資,包括通過其飛機資產管理合資企業的有限合夥人權益進行投資,我們認爲該合資企業的回報持續超過公司的資本成本。
- 擴大公司最近收購的子公司、環球航空服務旗下的衆多ATR、SAAB 340和Embraer運營商的維護計劃,包括擴建以滿足大型租賃公司不斷增長的需求。
- 擴大了山地航空貨運的營運資金需求,在2023年日曆期間增加了13架飛機,以支持其最大的航空貨運客戶。
- 繼續投資其不斷擴大的軟件業務,包括投資Ambry Hill Technologies,爲航空零件貿易商、分銷商和維護機構提供公認的 “遊戲規則改變者” 軟件套件。
- 爲Delphax Solutions, Inc. 的商業印刷設備銷售增長提供資金,該公司在2024財年迄今實現了186%的收入同比增長。
關於利益相關者問題的說明
如果您對本新聞稿或其他Air T事項有任何疑問,請通過我們的網站訪問Slido.com使用我們的互動問答功能來提交問題。我們打算保持該鏈接的開放性,可供股東提問。通過Slido提交的問題將在我們的年會上以 “現場” 和書面形式得到答覆,並每季度通過書面答覆進行答覆。請注意,法律和務實要求限制了我們回答所有發佈的問題,但我們打算通過書面答案來解決所有合理和相關的問題。
關於 AIR T, INC.
Air T Inc. 成立於1980年,是一個由強大的業務和金融資產組成的投資組合,每種業務和金融資產都是獨立但相互關聯的。其核心細分市場是隔夜航空貨運、航空地面支持設備的製造和銷售、商用噴氣發動機和零件以及企業和其他領域。我們力求擴大、加強和分散Air T的每股稅後現金流。我們的目標是建立Air T的核心業務,並在適當時擴展到鄰近行業和其他行業。我們力求激活增長和克服挑戰,同時爲所有利益相關者創造有意義的價值。欲了解更多信息,請訪問。
前瞻性陳述
本新聞稿中的某些聲明,包括 “概述” 中包含的聲明,是1995年《私人證券訴訟改革法》所指的 “前瞻性” 陳述,涉及公司的財務狀況、經營業績、計劃、目標、未來業績和業務。前瞻性陳述包括前面加有 “相信”、“待定”、“未來”、“期望”、“預期”、“預期”、“估計”、“取決於” 或類似表述的陳述。這些前瞻性陳述涉及風險和不確定性。實際結果可能與此類前瞻性陳述所設想的結果存在重大差異,原因包括潛在的風險和不確定性,例如:
- 由於對我們繼續經營業務的能力存在重大懷疑,無法通過銀行或其他融資或通過出售債務或股權證券的發行爲我們的業務融資;
- 公司市場的經濟和行業狀況;
- 與聯邦快遞的合同可能被終止或受到不利修改的風險;
- 爲聯邦快遞運營的飛機數量將減少的風險;
- GGS 客戶推遲或減少大量除冰設備訂單的風險;
- 任何恐怖活動對美國領土或國外的影響;
- 公司管理其運營費用或意外資本需求的成本結構,並將其與不斷變化的客戶服務需求和產量水平相匹配的能力;
- 公司履行還本付息契約和爲現有債務再融資的能力;
- 因涉及公司隔夜航空貨運業務、出售的設備或零件和/或提供的服務的事故而造成的傷害或其他損壞的風險;
- 公司商業和軍事設備及服務的市場接受度;
- 來自其他類似設備和服務提供商的競爭;
- 政府監管和技術的變化;
- 作爲投資持有的有價證券價值的變化;
- 溫和的冬季天氣條件減少了對除冰設備的需求;
- 公司相對較新的飛機資產管理業務及相關飛機資本合資企業的市場接受程度和運營成功率;以及
- 儘管我們目前的負債水平,但我們和我們的子公司可能仍能夠承擔更多的債務,這可能會進一步加劇與我們的高槓杆率相關的風險。
前瞻性陳述既不是對未來事件或情況的預測,也不是對未來事件或情況的保證,這些未來的事件或情況可能不會發生。無論是由於新信息、未來事件還是其他原因,我們沒有義務更新或修改任何前瞻性陳述,我們也明確表示不承擔任何義務。
聯繫
Air T, Inc. Brian Ochocki,首席財務官
bochocki@airt.net
612-843-4302
來源:Air T, Inc.
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