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Financing Arrangements
 3 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Financing Arrangements Financing Arrangements
Borrowings of the Company and its subsidiaries are summarized below at June 30, 2025 and March 31, 2025, respectively.
In connection with the acquisition of Royal on May 15, 2025, Air'Zona, CSA, GGS, MAC, WASI, Worthington, Jet Yard, and Jet Yard Solutions ("the Alerus Loan Parties") under the Revolving Credit Agreement with Alerus entered into Amendment No. 4 to Credit Agreement and Consent and Term Loan C with Alerus in the amount of $1.1 million. The purpose of the Amendment and Term Note was to provide a term loan to finance the full purchase price of the acquisition, to add Royal as an Alerus Loan Party to the Alerus credit agreement, as amended and to memorialize Alerus’ consent to the Royal acquisition. The new term loan matures May 15, 2030 and bears interest at the greater of 5.00% or the CME one-month term SOFR rate plus 2.25%. Monthly payments on Term Note C commenced June 15, 2025 and are equal to $12.5 thousand plus accrued interest. The term loan is secured by the terms of the Security Agreement dated as of August 29, 2024.

On May 30, 2025, the Company, along with AAM 24-1 (the "Issuer"), entered into new transaction documents with two Institutional Investors that replaced the Second Note Purchase Agreement ("Second NPA") transaction documents. Pursuant to the Third Note Purchase Agreement ("Third NPA") with the Institutional Investors, the Issuer agreed to issue and sell a Multiple Advance Senior Secured Note in an aggregate principal amount of up to $100.0 million (the “Multiple Advance Note”). For purposes of clarity and the avoidance of doubt, as of the closing date, the Institutional Investors advanced an additional $10.0 million to the Issuer and have collectively advanced under the Multiple Advance Note to the Issuer the aggregate amount of $40.0 million. Provided no default or event of default of the Issuer exists, and subject to satisfaction of all requirements for any closing as set forth in the Third NPA, the Investors are obligated to advance to the Issuer an additional aggregate $60.0 million in $10.0 million increments, each on or within fifteen days of the following dates:

September 30, 2025$10.0 million
January 30, 2026$10.0 million
May 30, 2026$10.0 million
September 30, 2026$10.0 million
January 30, 2027$10.0 million
May 30, 2027$10.0 million

The Multiple Advance Note bears annual interest at a rate of 8.5% which is computed on the basis of a 30/360-day year and actual days elapsed and is payable semi-annually in arrears, pursuant to the terms of the Multiple Advance Note. The maturity date of the Multiple Advance Note is May 31, 2035. The Multiple Advance Note contains standard and customary events of default including, but not limited to, failure to make payments when due under the Multiple Advance Note, failure to comply with certain covenants contained in the Multiple Advance Note, or bankruptcy or insolvency of, or certain monetary judgments against the Issuer or the Company. The prior notes were cancelled and replaced by the Multiple Advance Note. Funds advanced under the Multiple Advance Note may be reinvested for a period of six years from the date of closing.

The Issuer may prepay all or a portion of the outstanding principal and accrued but unpaid interest at any time, provided that (i) if the Issuer prepays all or any portion of the Multiple Advance Note within one year from the Issue Date, the Issuer is required to pay the Investors a prepayment premium equal 2.0% of the amount being prepaid, and (ii) if the Issuer prepays all or any portion of the Multiple Advance Note after the first anniversary of the Issue Date but on or prior to the second anniversary of the Issue Date, the Issuer is required to pay the Investors a prepayment premium equal to 1.0% of the amount being prepaid. If the Issuer elects to prepay a portion of the outstanding principal and accrued but unpaid interest, then in no event can such prepayment be for an amount less than $1.0 million.

The various equity interests that were assigned by the Company to the Issuer on or about the closing date of the original financings continue to serve as collateral for the repayment of the Multiple Advance Note as do all of the issued and outstanding capital stock of the Issuer owned by the Company, and the 320,000 Trust Preferred Securities, held by the Issuer.

The following table provides certain information about the current financing arrangements of the Company and its subsidiaries (other than related party obligations) as of June 30, 2025:

(In Thousands)June 30,
2025		March 31,
2025		Maturity DateInterest RateUnused commitments as of June 30, 2025Type of Debt
Air T Debt
Debt - Trust Preferred Securities1$35,450 $35,342 6/7/20498.00%Recourse
Total35,450 35,342 
Alerus Loan Parties Debt
Revolver - Alerus12,924 6,050 8/28/2026
Greater of 5.00% or 1-month SOFR + 2.00%
$1,076 Recourse
Overline Note - Alerus— — 10/31/2025
Greater of 5.00% or 1-month SOFR + 2.00%
3,000 Recourse
Term Note A - Alerus9,444 9,827 8/15/2029
Greater of 5.00% or 1-month SOFR + 2.00%
Recourse
Term Note C - Alerus1,038 — 5/15/2030
Greater of 5.00% or 1-month SOFR + 2.25%
Recourse
Total23,406 15,877 
Contrail Debt
Revolver - ONB18 3,127 11/24/2025
1-month SOFR + 3.56%
24,982 Limited recourse2
Term Note J - ONB8,125 8,750 9/12/2028
1-month SOFR + 3.86%
Limited recourse2
Total8,143 11,877 
Wolfe Lake Debt
Term Loan - Bridgewater8,989 9,059 12/2/20313.65%Non-recourse
Total8,989 9,059 
Air T Acquisition 22.1
Term Loan - Bridgewater3,500 3,500 2/8/20274.00%Non-recourse
Term Loan A - ING1,231 1,298 2/1/20273.50%Non-recourse
Term Loan B - ING1,172 1,082 5/1/20274.00%Non-recourse
Total5,903 5,880 
WASI Debt
Promissory Note - Seller's Note280 398 1/1/20266.00%Non-recourse
Total280 398 
AAM 24-1 Debt
Promissory Notes - Honeywell40,000 30,000 5/31/20358.50%Non-recourse
Total40,000 30,000 
MAC Debt
Term Loan - Bank of America, N.A.2,242 2,271 2/21/2030
1-month SOFR + 0.11% + 1.75%
Non-recourse
Total2,242 2,271 
Total Debt124,413 110,704 
Unamortized Premiums and Debt Issuance Costs(571)(379)
Total Debt, net$123,842 $110,325 
At June 30, 2025, our contractual financing obligations, including payments due by period, are as follows (in thousands):
Due byAmount
June 30, 2026$6,080 
June 30, 202722,212 
June 30, 20284,599 
June 30, 20292,736 
June 30, 20305,869 
Thereafter82,917 
124,413 
Unamortized Premiums and Debt Issuance Costs(571)
$123,842 

Interest Expense, net - Net interest expense for the Company and its subsidiaries were as follows for the three months ended June 30, 2025 and 2024:
Three Months Ended
June 30,
20252024
Air T$711 $971 
Jet Yard— 18 
Alerus Loan Parties371 — 
Contrail309 358 
AirCo 1— 126 
Wolfe Lake83 60 
Air T Acquisition 22.189 68 
WASI5 12 
AAM 24-1699 323 
MAC38 — 
Other9 10 
Total$2,314 $1,946 
Cash paid for interest totaled $2.3 million during the three months ended June 30, 2025.