Air Industries Group Amends Loan Agreement with Webster Bank, Expands Term Loan

Air Industries Group, a precision components and assemblies manufacturer for aerospace and defense contractors, recently made significant changes to its financial agreements. The company disclosed in an SEC filing on January 31, 2025, that it entered into the Eighth Amendment to its Loan and Security Agreement with Webster Bank.

The Eighth Amendment allows for the relaxation of financial covenants, permits the repayment of subordinated debt, and enables an expansion of Air Industries Group’s Term Loan by approximately $1.6 million. These additional funds, amounting to around $1.9 million, are earmarked for the acquisition of new cutting-edge machinery. This machinery investment is critical to support a recently announced $33 million contract, with expectations of significantly enhancing the company’s production capabilities.

In a press release issued by Air Industries Group on February 3, 2025, it was revealed that Webster Bank, the primary lender, played a vital role in facilitating these amendments to the Credit Facility. The amended terms include relaxing required covenants and allowing for the repayment of subordinated debt. Furthermore, the expanded Term Loan will provide crucial funding for the purchase of state-of-the-art machinery, essential for fulfilling existing and upcoming contracts.

Lou Melluzzo, the Chief Executive Officer of Air Industries Group, conveyed his appreciation for Webster Bank’s support over the years, emphasizing the bank’s assistance in expanding production capacity for key products like components for the CH-53K heavy lift helicopter. He also mentioned plans to negotiate an extension of the loan facility with Webster Bank later in the year, highlighting the positive and collaborative relationship between the two entities.

Air Industries Group is renowned for its precision components and assemblies used in critical aerospace and defense applications. The company’s products, ranging from landing gears to engine components, are known for their quality and reliability, supporting essential operations for military and civilian safety.

Forward-looking statements included in the press release underscore Air Industries Group’s optimism about future market trends, revenues, and financial performance. The company’s prudent use of Adjusted EBITDA as a supplemental profitability measure also reflects its commitment to financial transparency and performance evaluation.

For contacts or inquiries, interested parties can visit Air Industries Group’s official website at www.airindustriesgroup.com/contact-us/.

The financial implications and strategic changes resulting from the recent amendments demonstrate Air Industries Group’s commitment to growth and operational excellence within the aerospace and defense industry. The company’s collaboration with Webster Bank underscores a strong financial foundation and strategic focus moving forward.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Air Industries Group’s 8K filing here.

Air Industries Group Company Profile

Air Industries Group, together with its subsidiaries, engages in the design, manufacture, and sale of precision components and assemblies for defense and commercial aerospace industry in the United States. It offers actuators, arresting gears, aerostructures, aircraft structures, chaff pod assemblies, machining and milling solutions, cylinders, drag beams and braces, flight controls, flight safety critical components, integrated assemblies, landing gears, large diameter turn-mills, submarine valves, thrust struts, engine mounts, and turbine engine components and weldments for aircraft jet engines, ground turbines, and other complex machines.