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Financing Arrangements | 3 Months Ended
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Jun. 30, 2023
Debt Disclosure [Abstract] |
Financing Arrangements | Financing Arrangements Borrowings of the Company and its subsidiaries are summarized below at June 30, 2023 and March 31, 2023, respectively. Effective May 26, 2023, Contrail entered into the Fourth Amendment to Master Loan Agreement and the Amended and Restated Promissory Note Term Note G with Old National Bank ("ONB"). The purpose of the amended documents was to replace the one-month LIBOR based interest rate with a one-month SOFR-based rate. All other material terms of the obligations remain the same. The principal amount of the loan was $38.2 million on the effective date of the amended documents and the applicable interest rate is now the one-month SOFR based rate, as defined in the loan agreement, plus 3.11%. Effective May 26, 2023, Contrail entered into the First Amendment to Supplement #8 to Master Loan Agreement, the Fifth Amendment to Supplement #2 to the Master Loan Agreement and the Fourth Amended and Restated Promissory Note Revolving Note with ONB. The purpose of the amended documents was to replace the LIBOR based interest rate with a one-month SOFR based rate. All other material terms of the obligation remain the same. The maximum principal amount of the revolving note remains at $25.0 million and the applicable interest rate is now the one-month SOFR-based rate, as defined in the loan agreement, plus 3.56%. On May 26, 2023, AirCo 1 executed an Amendment to Main Street Priority Loan Facility Term Loan Agreement with Park State Bank ("PSB"). The Amendment replaces the three-month LIBOR benchmark applicable to the loan with a three-month SOFR based rate, which is defined as the three-month SOFR rate plus 3.26%. The principal amount of the loan was $6.4 million on the effective date of the amended agreement. The interest rate is to be determined on the 11th day of each month on the amounts that remain outstanding, commencing June 11, 2023. On June 23, 2023, the Company and MBT entered into amendments to the MBT revolving credit agreement and related promissory note. The amendments extended the maturity date of the credit facility to August 31, 2024 and include the following changes: 1. A $2.0 million seasonal increase in the maximum amount available under the facility. The maximum amount of the facility will now increase to $19.0 million between May 1 and November 30 of each year and will decrease to $17.0 million between December 1 and April 30 of each year; 2.The reference rate for the interest rate payable on the revolving facility will change from Prime to SOFR, plus a spread. The exact spread over SOFR will change every September 30 and March 31 based on the Company calculated funded debt leverage ratio (defined as total debt divided by EBITDA). Depending on the result of the calculation, the interest rate spread applicable to the facility will range between 2.25% and 3.25%; 3.The unused commitment fee on the revolving credit facility will increase from 0.11% to 0.15%; and, 4.The covenant restricting the Company’s use of funds for “Other Investments” was revised to limit the Company to $5.0 million of “Other Investments” per year. The following table provides certain information about the current financing arrangements of the Company and its subsidiaries as of June 30, 2023:
(In Thousands) | June 30, 2023 |  | March 31, 2023 |  | Maturity Date |  | Interest Rate |  | Unused commitments at June 30, 2023
Air T Debt |  |  |  |  |  |  |  |  |
Revolver - MBT | $ | 13,366 |  |  | $ | 8,742 |  |  | 8/31/2024 |  | SOFR + range of 2.25% - 3.25% |  | $ | 5,634 |
Term Note A - MBT | 7,563 |  |  | 7,762 |  |  | 8/31/2031 |  | 3.42% |  |
Term Note B - MBT | 2,670 |  |  | 2,740 |  |  | 8/31/2031 |  | 3.42% |  |
Term Note D - MBT | 1,321 |  |  | 1,338 |  |  | 1/1/2028 |  | 1-month LIBOR + 2.00% |  |
Term Note E - MBT | 235 |  |  | 800 |  |  | 6/25/2025 |  | Greater of LIBOR + 1.50% or 2.50% |  |
Term Note F - MBT | 933 |  |  | 983 |  |  | 1/31/2028 |  | Greater of 6.00% or Prime + 1.00% |  |
Debt - Trust Preferred Securities | 25,602 |  |  | 25,598 |  |  | 6/7/2049 |  | 8.00% |  |
Total | 51,690 |  |  | 47,963 |  |  |  |  |  |  |
AirCo 1 Debt |  |  |  |  |  |  |  |  |
Term Loan - PSB | 6,393 |  |  | 6,393 |  |  | 12/11/2025 |  | 3-month SOFR + 3.26% |  |
Total | 6,393 |  |  | 6,393 |  |  |  |  |  |  |
Jet Yard Debt |  |  |  |  |  |  |  |  |
Term Loan - MBT | 1,819 |  |  | 1,844 |  |  | 8/31/2031 |  | 4.14% |  |
Total | 1,819 |  |  | 1,844 |  |  |  |  |  |  |
Contrail Debt |  |  |  |  |  |  |  |  |
Revolver - ONB | 5,183 |  |  | 12,441 |  |  | 9/5/2023 |  | 1-month SOFR + 3.56% |  | $ | 19,817 |
Term Loan G - ONB | 38,180 |  |  | 38,180 |  |  | 11/24/2025 |  | 1-month SOFR + 3.11% |  |
Total | 43,363 |  |  | 50,621 |  |  |  |  |  |  |
Delphax Solutions Debt |  |  |  |  |  |  |  |  |
Canadian Emergency Business Account Loan | 30 |  |  | 30 |  |  | 12/31/2025 |  | 5.00% |  |
Total | 30 |  |  | 30 |  |  |  |  |  |  |
Wolfe Lake Debt |  |  |  |  |  |  |  |  |
Term Loan - Bridgewater | 9,523 |  |  | 9,586 |  |  | 12/2/2031 |  | 3.65% |  |
Total | 9,523 |  |  | 9,586 |  |  |  |  |  |  |
Air T Acquisition 22.1 |  |  |  |  |  |  |  |  |
Term Loan - Bridgewater | 4,500 |  |  | 4,500 |  |  | 2/8/2027 |  | 4.00% |  |
Term Loan A - ING | 2,445 |  |  | 2,610 |  |  | 2/1/2027 |  | 3.50% |  |
Term Loan B - ING | 1,087 |  |  | 1,088 |  |  | 5/1/2027 |  | 4.00% |  |
Total | 8,032 |  |  | 8,198 |  |  |  |  |  |  |
WASI Debt |  |  |  |  |  |  |  |  |
Promissory Note - Seller's Note | 1,171 |  |  | 1,279 |  |  | 1/1/2026 |  | 6.00% |  |
Total | 1,171 |  |  | 1,279 |  |  |  |  |  |  |
Total Debt | 122,021 |  |  | 125,914 |  |  |  |  |  |  |
Unamortized Debt Issuance Costs | (763) |  |  | (829) |  |  |  |  |  |  |
Total Debt, net | $ | 121,258 |  |  | $ | 125,085 |  |  |  |  |  |  |
At June 30, 2023, our contractual financing obligations, including payments due by period, are as follows (in thousands):
Due by | Amount
June 30, 2024 | $ | 22,721 |
June 30, 2025 | 24,499 |
June 30, 2026 | 26,160 |
June 30, 2027 | 6,476 |
June 30, 2028 | 2,877 |
Thereafter | 39,288 |
| 122,021 |
Unamortized Debt Issuance Costs | (763) |
| $ | 121,258 |

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