U.S. Department of the Treasury: Aero Hydraulics, "Transaction Summary"

Summary

A U.S. Department of the Treasury transaction summary stating that Treasury agreed to make a loan totaling $450,000 to Aero Hydraulics Inc., a repair station with approximately 2 U.S. employees in March 2020. Treasury made the loan under section 4003(b)(1) of the CARES Act; the loan is unsecured, carries an annual interest rate of LIBOR plus 5.5% and matures on October 24, 2025. Treasury funded the full loan amount at close, and the proceeds will be used to provide liquidity to continue the Company's operations. The agreement includes covenants on employee compensation, stock repurchases, dividends and reductions in employment levels, and Treasury will receive 3% payment-in-kind annual interest.

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Cite this document

“U.S. Department of the Treasury: Aero Hydraulics, ‘Transaction Summary.’” Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/u-s-department-of-the-treasury-aero-hydraulics-transaction-summary-d923898e8e/, SHA-256 962248998bc3cc4cfdc905af8aee15deae3bf5444361b19225705d0f1b53641f.

Full text

                                     Transaction Summary

The U.S. Department of the Treasury agreed to make a loan totaling $450,000 to Aero
Hydraulics Inc. (the Company), a repair station with approximately 2 U.S. employees in March
2020.

Treasury made the loan pursuant to section 4003(b)(1) of the Coronavirus Aid, Relief, and
Economic Security (CARES) Act. The loan is unsecured. It has an annual interest rate equal to
LIBOR plus 5.5% and matures on October 24, 2025. Treasury funded the full loan amount at
close. The loan proceeds will be used to provide liquidity to continue the Company’s operations.
The transaction agreement includes covenants by the Company to comply with certain
restrictions on employee compensation, stock repurchases, dividends, and reductions in
employment levels, as required by the CARES Act. The loan constitutes senior indebtedness of
the Company, and Treasury will receive 3% payment-in-kind annual interest on the loan in
accordance with section 4003(d) of the CARES Act.

File and source

File: TREAS-Aero-Hydraulics-Transaction-Summary.pdf
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SHA-256: 962248998bc3cc4cfdc905af8aee15deae3bf5444361b19225705d0f1b53641f
Our copy: TREAS-Aero-Hydraulics-Transaction-Summary.pdf
Original: home.treasury.gov