Air Industries Group, a manufacturer of precision components and assemblies for large aerospace and defense prime contractors, has amended the terms of its credit facility with its primary lender, Webster Bank. Relaxing the required covenants, permitting the repayment of subordinated debt, and expanding the company’s term loan by approximately $1.6 million. These funds will be used for the purchase of new state of the art machinery, costing approximately $1.9 million. This investment in production equipment will support the recently announced $33 million contract and will greatly increase throughput.
“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,” Lou Melluzzo, CEO of Air Industries Group, said. “Our loan facility with Webster matures at the end of this year. Negotiations for an extension of the facility will begin in the second quarter, after the filing of our Form 10-K. Webster Bank has been a phenomenal partner to work with, and we have a high degree of confidence that we will be successful in extending the loan facility.”
