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Sterling National Bank Provides $19.8MM in Refi & Working Capital Financing to Air Industries Group

January 02, 2020, 08:55 AM
Filed Under: Aerospace

Air Industries Group, an integrated manufacturer of precision equipment assemblies and components for leading aerospace and defense prime contractors, announced that on December 31, 2019 it entered into a new 3-year, $19.8 million credit facility, consisting of a $16 million revolving credit line, and a $3.8 million term loan. Proceeds of the refinancing will repay the Company’s existing loans with PNC Business Credit, retire all of our capital lease obligations, and be used for general working capital purposes.

Borrowings under both the revolving credit line and the term loan will bear an interest rate equal to 30-day LIBOR, plus 2.5% (with a floor of 3.5%). The current interest rate will be approximately 4.25%, a reduction of nearly 50% from the PNC rate is of 8.75%.

Mr. Lou Melluzzo, CEO of Air Industries commented: "This refinancing with Sterling National Bank is an important step in Air Industries return to profitability. It will reduce our interest expense and dramatically reduce principal amortization. On a pro-forma basis for the nine months ended September 30, 2019 this new credit facility would have saved us over $1.5 million in cash.

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