Sterling National Bank agreed to expand the size of and extend the maturity of Air Industries Group’s revolving credit facility and term loan.
The revolving credit facility increased by $4 million from its current $16 million limit to $20 million. The inventory sublimit of the revolving credit facility also increased by $3 million to $14 million.
The maturity dates of both the revolving credit facility and term loan have been extended by three years from Dec. 31, 2022, to Dec. 31, 2025.
Sterling National also agreed, subject to certain limitations, to allow Air Industries Group to begin amortizing part of its subordinated debt. Reducing the company’s subordinated debt will reduce interest expense and increase net income.
“Sterling National Bank’s actions are a strong vote of confidence in our company and its prospects for the future,” Lou Melluzzo, CEO of Air Industries Group, said. “Sterling National became our bank on Jan. 1, 2020, and has been supportive of Air Industries throughout all the challenges of the pandemic. Late last year, Sterling National increased our term loan, enabling us to complete our significant investment in new equipment and machinery.
“We are very pleased with the expansion of our credit facility and are confident that it will allow sufficient liquidity for our anticipated continued growth of revenues and profits. The extension of the maturity to year-end 2025 — more than four-years away — is very reassuring.”
Air Industries Group is an integrated manufacturer of precision assemblies and components for aerospace and defense prime contractors.
