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Financing Arrangements
6 Months Ended
Sep. 30, 2022
Debt Disclosure [Abstract]  
Financing Arrangements Financing Arrangements
Borrowings of the Company and its subsidiaries are summarized below at September 30, 2022 and March 31, 2022, respectively.
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 September 30, 2022, the unused commitment on the Overline Note was $4.1 million and there was no unused commitment on the MBT Revolver. 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 $17.0 million remains at the greater of 2.50% or Prime minus 1.00%. The interest rate applicable to borrowings under the facility that exceed $17.0 million is the greater of 2.50% or Prime plus 0.50%. 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. As of September 30, 2022, the Company has received $1.4 million of the ERC and none of the carryback tax refunds. It is not possible to estimate when, or if, the remainder of 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.

On September 30, 2022, the Company executed a promissory note payable to CCI ("Promissory Note - CCI") for $2.0 million that bears interest at 10% per annum and matures on December 30, 2022. The note may be prepaid at any time without penalty. The note is subordinate and junior to any and all indebtedness of the Company to MBT.

The following table provides certain information about the current financing arrangements of the Company and its subsidiaries as of September 30, 2022:
(In Thousands)September 30,
2022
March 31,
2022
Maturity DateInterest RateUnused commitments at September 30, 2022
Air T Debt
Revolver - MBT$17,000 $10,969 8/31/2023
Greater of 2.50% or Prime - 1.00%
$— 
Overline Note - MBT879 — 
3/31/20231
Greater of 2.50% or Prime + 0.50%
$4,121 
  Term Note A - MBT8,157 8,542 8/31/20313.42%
  Term Note B - MBT2,878 3,014 8/31/20313.42%
  Term Note D - MBT1,371 1,405 1/1/2028
1-month LIBOR + 2.00%
Promissory Note - CCI2,000 — 12/30/202210.00%
Term Note E - MBT1,997 2,316 6/25/2025
Greater of LIBOR + 1.50% or 2.50%
Debt - Trust Preferred Securities25,590 25,567 6/7/20498.00%
Total59,872 51,813 
AirCo 1 Debt
Term Loan - Park State Bank6,393 6,393 12/11/2025
3-month LIBOR + 3.00%
Total6,393 6,393 
Jet Yard Debt
Term Loan - MBT1,894 1,943 8/31/20314.14%
Total1,894 1,943 
Contrail Debt
Revolver - Old National Bank ("ONB")10,143 3,843 9/5/2023
1-month LIBOR + 3.45%
$14,857 
Term Loan G - ONB44,918 44,918 11/24/2025
1-month LIBOR + 3.00%
Term Loan H - ONB12,101 8,698 8/18/2023
Wall Street Journal (WSJ) Prime Rate + 0.75%
Total67,162 57,459 
Delphax Solutions Debt
Canadian Emergency Business Account Loan29 32 12/31/20255.00%
Total29 32 
Wolfe Lake Debt
Term Loan - Bridgewater9,714 9,837 12/2/20313.65%
Total9,714 9,837 
Air T Acquisition 22.1
Term Loan - Bridgewater5,000 5,000 2/8/20274.00%
Term Loan A - ING2,632 3,341 2/1/20273.50%
Term Loan B - ING975 1,114 5/1/20274.00%
Total8,607 9,455 
Total Debt153,671 136,932 
Less: Unamortized Debt Issuance Costs(988)(1,124)
Total Debt, net$152,683 $135,808 
1 Earlier of 8/31/23 or the date on which Air T has received the payment from the federal income tax refunds in the amount of approximately $2.6 million and Employee Retention Tax Credits in an amount not less than $9.1 million. As of September 30, 2022, the Company has received $1.4 million of the ERC and none of the federal income tax refunds.
At September 30, 2022, our contractual financing obligations, including payments due by period, are as follows (in thousands):
Due byAmount
September 30, 2023$44,704 
September 30, 202410,130 
September 30, 202512,183 
September 30, 202639,085 
September 30, 20275,982 
Thereafter41,587 
153,671 
Less: Unamortized Debt Issuance Costs(988)
$152,683 
During the second quarter ended September 30, 2022 the Company did not sell any TruPs. The amount outstanding on the Company's Debt - Trust Preferred Securities is $25.6 million as of September 30, 2022.