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Financing Arrangements | 3 Months Ended
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Jun. 30, 2022
Debt Disclosure [Abstract] |
Financing Arrangements | Financing Arrangements Borrowings of the Company and its subsidiaries are summarized below at June 30, 2022 and March 31, 2022, respectively. As mentioned in Note 2, on December 2, 2021, the Company, through its wholly-owned subsidiary Wolfe Lake HQ, LLC, completed the purchase of the real estate located at 5000 36th Street West, St. Louis Park, Minnesota pursuant to a real estate purchase agreement with WLPC East, LLC, a Minnesota limited liability company (an unrelated third-party) dated October 11, 2021. The purchase price was $13.2 million, which was paid for with approximately $3.3 million in cash and a new secured loan from Bridgewater with an aggregate principal amount of $9.9 million and a fixed interest rate of 3.65% which matures on December 2, 2031 ("Wolfe Lake Debt"). The promissory note provides for monthly payments of principal and interest commencing January 1, 2022 and continuing to the maturity date in the amount of $50.9 thousand. As mentioned in Note 2, on February 10, 2022, the Company acquired GdW, a Dutch holding company in the business of providing global aviation data and information. The acquisition was completed through a wholly-owned subsidiary of the Company, Air T Acquisition 22.1, a Minnesota limited liability company, through its Dutch subsidiary, Shanwick, and was funded with cash, investment by executive management of the underlying business, and loans as described below. As part of the transaction, Shanwick obtained a EUR 4.0 million loan package from ING Bank ("ING") to further fund this transaction. The ING loan package includes a EUR 3.0 million term loan (translated into $3.3 million Term Loan A - ING below) which carries an interest rate of 3.5% and a maturity date of February 1, 2027, and a EUR 1.0 million term loan (translated into $1.1 million Term Loan B - ING below) which carries an interest rate of 4% and a maturity date of May 1, 2027. The ING loan is non-recourse to the Company and Air T Acquisition 22.1 and is secured by the shares of GdW. The Company secured the funds necessary to fund its portion of the GdW acquisition consideration on February 8, 2022 through (i) a new secured loan from Bridgewater Bank ("Bridgewater"), a Minnesota banking corporation and (ii) cash. The loan is in the principal amount of $5.0 million and bears a fixed interest rate of 4.00%. The loan provides for monthly payments of accrued interest and annual principal payments of $0.5 million each for years 2023 through 2027, and matures on February 8, 2027 at which time the entire unpaid balance will be due and payable in full. In addition, the loan agreement contains affirmative and negative covenants. The loan is secured by a first lien on all of the assets of Air T Acquisition 22.1, a pledge of $5.0 million 8.0% TruPs, and a personal guaranty of the Company’s Chairman, President and Chief Executive Officer Nicholas Swenson. On June 9, 2022, the Company, Jet Yard and MBT entered into Amendment No. 1 to Third Amended and Restated Credit Agreement (“Amendment”) and a related Overline Note (“Overline Note”) in the original principal amount of $5.0 million. The Amendment and Note memorialize an increase to the amount that may be drawn by the Company on the MBT revolving credit agreement from $17.0 million to $22.0 million. As of June 30, 2022, the unused commitment of the MBT revolver and the Overline Note was $2.9 million and $5.0 million, respectively. The total amount of borrowings under the facility as revised is now the Company’s calculated borrowing base or $22.0 million. The borrowing base calculation methodology remains unchanged. The interest rate on borrowings under the facility that are less than $17 million remains at the greater of 2.50% or Prime minus 1%. The interest rate applicable to borrowings under the facility that exceed $17.0 million is the greater of 2.50% or Prime plus 0.5%. The commitment fee on unused borrowings below $17.0 million remains at 0.11%. The commitment fee on unused borrowings above $17.0 million is 0.20%. The Amendment also includes an additional covenant to the credit agreement, namely the requirement that the Company provide inventory appraisals for AirCo, AirCo Services and Worthington to MBT twice a year. The Overline loan and commitment mature on the earlier of March 31, 2023 or the date on which the Company receives all funds from the Company’s Employee Retention Credit ("ERC") application (estimated at approximately $9.1 million) filed on or about January 24, 2022 plus the full receipt of the Company’s carryback tax refund for the year (estimated at approximately $2.6 million) filed on or about August 19, 2021. Both were applied for under different components of the CARES Act. It is not possible to estimate when, or if, these funds may be received. Each of the Company subsidiaries that has guaranteed the MBT revolving facility executed a guaranty acknowledgment in which they agreed to guaranty the Overline Loan and acknowledged, among other things, that the Overline Loan would not impair the lenders rights under the previously executed guaranty or security agreement. The following table provides certain information about the current financing arrangements of the Company's and its subsidiaries as of June 30, 2022:
(In Thousands) | June 30, 2022 |  | March 31, 2022 |  | Maturity Date |  | Interest Rate |  | Unused commitments at June 30, 2022
Air T Debt |  |  |  |  |  |  |  |  |
Revolver - MBT | $ | 14,068 |  |  | $ | 10,969 |  |  | 8/31/2023 |  | Greater of 2.50% or Prime - 1.00% |  | $ | 2,932 |
Overline Note - MBT | — |  |  | — |  |  | 3/31/20231 |  | Greater of 2.50% or Prime + 0.50% |  | $ | 5,000 |
Term Note A - MBT | 8,350 |  |  | 8,542 |  |  | 8/31/2031 |  | 3.42% |  |
Term Note B - MBT | 2,946 |  |  | 3,014 |  |  | 8/31/2031 |  | 3.42% |  |
Term Note D - MBT | 1,388 |  |  | 1,405 |  |  | 1/1/2028 |  | 1-month LIBOR + 2.00% |  |
Term Note E - MBT | 1,997 |  |  | 2,316 |  |  | 6/25/2025 |  | Greater of LIBOR + 1.50% or 2.50% |  |
Debt - Trust Preferred Securities | 25,586 |  |  | 25,567 |  |  | 6/7/2049 |  | 8.00% |  |
Total | 54,335 |  |  | 51,813 |  |  |  |  |  |  |
AirCo 1 Debt |  |  |  |  |  |  |  |  |
Term Loan - Park State Bank | 6,393 |  |  | 6,393 |  |  | 12/11/2025 |  | 3-month LIBOR + 3.00% |  |
Total | 6,393 |  |  | 6,393 |  |  |  |  |  |  |
Jet Yard Debt |  |  |  |  |  |  |  |  |
Term Loan - MBT | 1,919 |  |  | 1,943 |  |  | 8/31/2031 |  | 4.14% |  |
Total | 1,919 |  |  | 1,943 |  |  |  |  |  |  |
Contrail Debt |  |  |  |  |  |  |  |  |
Revolver - Old National Bank ("ONB") | — |  |  | 3,843 |  |  | 9/5/2023 |  | 1-month LIBOR + 3.45% |  | $ | 25,000 |
Term Loan G - ONB | 44,918 |  |  | 44,918 |  |  | 11/24/2025 |  | 1-month LIBOR + 3.00% |  |
Term Loan H - ONB | 14,875 |  |  | 8,698 |  |  | 8/18/2023 |  | Wall Street Journal (WSJ) Prime Rate + 0.75% |  |
Total | 59,793 |  |  | 57,459 |  |  |  |  |  |  |
Delphax Solutions Debt |  |  |  |  |  |  |  |  |
Canadian Emergency Business Account Loan | 31 |  |  | 32 |  |  | 12/31/2025 |  | 5.00% |  |
Total | 31 |  |  | 32 |  |  |  |  |  |  |
Wolfe Lake Debt |  |  |  |  |  |  |  |  |
Term Loan - Bridgewater | 9,776 |  |  | 9,837 |  |  | 12/2/2031 |  | 3.65% |  |
Total | 9,776 |  |  | 9,837 |  |  |  |  |  |  |
Air T Acquisition 22.1 |  |  |  |  |  |  |  |  |
Term Loan - Bridgewater | 5,000 |  |  | 5,000 |  |  | 2/8/2027 |  | 4.00% |  |
Term Loan A - ING | 2,960 |  |  | 3,341 |  |  | 2/1/2027 |  | 3.50% |  |
Term Loan B - ING | 1,039 |  |  | 1,114 |  |  | 5/1/2027 |  | 4.00% |  |
Total | 8,999 |  |  | 9,455 |  |  |  |  |  |  |
Total Debt | 141,246 |  |  | 136,932 |  |  |  |  |  |  |
Less: Unamortized Debt Issuance Costs | (1,065) |  |  | (1,124) |  |  |  |  |  |  |
Total Debt, net | $ | 140,181 |  |  | $ | 135,808 |  |  |  |  |  |  |
At June 30, 2022, our contractual financing obligations, including payments due by period, are as follows (in thousands):
Due by | Amount
June 30, 2023 | $ | 2,607 |
June 30, 2024 | 39,098 |
June 30, 2025 | 12,207 |
June 30, 2026 | 39,111 |
June 30, 2027 | 5,168 |
Thereafter | 43,055 |
| 141,246 |
Less: Unamortized Debt Issuance Costs | (1,065) |
| $ | 140,181 |
During the first quarter ended June 30, 2022 the Company did not sell any Trust Preferred (“TruP”) securities. The amount outstanding on the Company's Debt - Trust Preferred Securities is $25.6 million as of June 30, 2022.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI https://asc.fasb.org/topic&trid=2208564 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (h) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (g) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1E -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (i) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 + Details
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