Air Industries Group announced that Webster Bank, its primary lender, has amended the terms of its Credit Facility. The amendment includes relaxing required covenants, permitting the repayment of subordinated debt, and expanding the company’s Term Loan by approximately $1.6 million.
These additional funds will be utilized for the purchase of new state-of-the-art machinery, costing approximately $1.9 million. This investment in production equipment is specifically intended to support the recently announced $33 million CH-53K contract.
The new machines are expected to greatly increase throughput and duplicate an existing production cell, effectively doubling the production capacity for these products. CEO Lou Melluzzo expressed confidence in extending the loan facility with Webster Bank, which matures at the end of this year, with negotiations set to begin in the second quarter.
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