Air Industries Group announced that Webster Bank (formerly Sterling National Bank) has agreed to expand the size of its existing Term Loan and establish a Capital Expenditure Line of Credit to finance future purchases of machinery and equipment. The transaction closed on May 17, 2022. The new Webster Bank Term Loan has an initial principal amount of $5 million.

These funds will be used to retire the existing term loan of approximately $3.1 million, retire a capital lease of approximately $250,000, and purchase two CNC milling centers for an aggregate of $870,000. In addition to the Term Loan, Webster Bank has extended a new $2.0 million Capital Expenditure Line of Credit to be used to purchase new machinery and equipment. All advances under the Term Loan and the Capital Expenditure Line of Credit are amortizable over seven years (84 months), mature on December 31, 2026, and bear interest at the greater of (i) 3.5% per annum or (ii) 30-day LIBOR plus 250 basis points or (iii) Prime Rate less65 basis points.

The current interest rate is 3.5%.