Air T, Inc. recently announced the closing of a direct, structured $15,000,000 private note transaction with a major pension plan on February 22, 2024 (the "Transaction"). The Transaction involved 7-year notes bearing 8.5% interest per annum. The Company believes that the Transaction represents an important step forward as it allows the Company to securitize its ownership in more than fifteen aviation-related joint venture interests, currently managed by its subsidiaries, in order to raise non-recourse debt which the Company can use to pay down other debt, as well as make further aviation-related investments.

As part of the Transaction, all of the cash flows from the securitized joint venture interests will be used to pay interest and principal, with the excess available to make additional aviation-related joint venture investments within the structure. The Transaction will also allow the Company to redeploy capital into other opportunities. Some of the proceeds from the Transaction were used to fully pay down the Company's revolving debt facility with Minnesota Bank & Trust.