Contrail Aviation Support, a partially owned subsidiary of Air T, entered into a business loan agreement with Old National Bank.

The agreement provides for revolving credit borrowings by Contrail in an amount up to $15 million and replaces a revolving credit facility that Contrail had entered into with BMO Harris Bank on July 18, 2016.

Borrowings under the agreement will bear interest at an annual rate equal to one-month LIBOR plus 3.00%.

The obligations of Contrail are secured by a first-priority security interest in substantially all of the assets of Contrail and are also guaranteed by the company, with such guaranty limited in amount to a maximum of $1.6 million plus interest on such amount at the rate of interest in effect under the agreement, plus costs of collection.

Contrail is a global supplier of surplus and aftermarket commercial jet engine components.