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Financing Arrangements
 9 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Financing Arrangements Financing Arrangements
Borrowings of the Company and its subsidiaries are summarized below at December 31, 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 December 31, 2022, the unused commitment on the Overline Note and the MBT revolver was $5.0 million and $8.2 million, respectively. 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 December 31, 2022, the Company has received $2.5 million of the ERC and $1.2 million 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 10.00% per annum and matured on December 30, 2022. As of December 31, 2022, this note has been repaid without penalty.
On November 8, 2022, Contrail entered into the Second Amendment to Master Loan Agreement (the “Amendment”) with ONB. The Amendment amends the Master Loan Agreement dated as of June 24, 2019, as amended. The principal revisions made in the Amendment are: (i) the tangible net worth covenant was revised to require that Contrail maintain a tangible net worth of at least $12.0 million at all times prior to March 31, 2024 and $15.0 million at all times on or following March 31, 2024; and, (ii) that all proceeds from certain asset sales during the period beginning on October 1, 2022 and ending on March 31, 2023 be applied as prepayments on Term Loan G. Contrail executed a Collateral Assignment of two Aircraft engines in connection with the Amendment.

The following table provides certain information about the current financing arrangements of the Company and its subsidiaries as of December 31, 2022:
(In Thousands)December 31,
2022		March 31,
2022		Maturity DateInterest RateUnused commitments at December 31, 2022
Air T Debt
Revolver - MBT$8,843 $10,969 8/31/2023
Greater of 2.50% or Prime - 1.00%
$8,157 
Overline Note - MBT— — 
3/31/20231
Greater of 2.50% or Prime + 0.50%
$5,000 
  Term Note A - MBT7,961 8,542 8/31/20313.42%
  Term Note B - MBT2,809 3,014 8/31/20313.42%
  Term Note D - MBT1,355 1,405 1/1/2028
1-month LIBOR + 2.00%
Promissory Note - CCI— — 
12/30/20222
10.00%
Term Note E - MBT1,317 2,316 6/25/2025
Greater of LIBOR + 1.50% or 2.50%
Debt - Trust Preferred Securities25,594 25,567 6/7/20498.00%
Total47,879 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 - MBT1,869 1,943 8/31/20314.14%
Total1,869 1,943 
Contrail Debt
Revolver - Old National Bank ("ONB")16,119 3,843 9/5/2023
1-month LIBOR + 3.45%
$8,881 
Term Loan G - ONB44,918 44,918 11/24/2025
1-month LIBOR + 3.00%
Term Loan H - ONB7,150 8,698 8/18/2023
Wall Street Journal (WSJ) Prime Rate + 0.75%
Total68,187 57,459 
Delphax Solutions Debt
Canadian Emergency Business Account Loan30 32 12/31/20255.00%
Total30 32 
Wolfe Lake Debt
Term Loan - Bridgewater9,651 9,837 12/2/20313.65%
Total9,651 9,837 
Air T Acquisition 22.1
Term Loan - Bridgewater5,000 5,000 2/8/20274.00%
Term Loan A - ING2,720 3,341 2/1/20273.50%
Term Loan B - ING1,067 1,114 5/1/20274.00%
Total8,787 9,455 
Total Debt142,796 136,932 
Less: Unamortized Debt Issuance Costs(912)(1,124)
Total Debt, net$141,884 $135,808 
1 Earlier of 3/31/23 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 December 31, 2022, the Company has received $2.5 million of the ERC and $1.2 million of the federal income tax refunds.
2 On September 30, 2022, the Company executed a promissory note payable to CCI for $2.0 million. As of December 31, 2022, this note has been repaid.
At December 31, 2022, our contractual financing obligations, including payments due by period, are as follows (in thousands):
Due byAmount
December 31, 2023$42,260 
December 31, 202410,198 
December 31, 202540,416 
December 31, 20262,812 
December 31, 20276,976 
Thereafter40,134 
142,796 
Less: Unamortized Debt Issuance Costs(912)
$141,884 
During the third quarter ended December 31, 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 December 31, 2022.