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

Summary

A U.S. Department of the Treasury transaction summary stating that Treasury agreed to make a loan totaling $4.7 million to Allflight Corp., a wholly owned subsidiary of 8 Alpha, Inc. The Company is described as a repair station with approximately 35 U.S. employees in March 2020, and the loan was made under section 4003(b)(1) of the CARES Act. It is secured by tooling and inventory, engines and spare parts, carries an interest rate of LIBOR plus 3.5% and matures on November 5, 2025. The Company may draw the proceeds in a single draw through November 19, 2020, and Treasury will receive 3% payment-in-kind annual interest.

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“U.S. Department of the Treasury: Allflight, ‘Transaction Summary.’” Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/u-s-department-of-the-treasury-allflight-transaction-summary-d905fabfab/, SHA-256 7b39f8249898915db2eb565397f5e05d52c96537c90d66f12291aa692c0bdd89.

Full text

                                     Transaction Summary

Treasury agreed to make a loan totaling $4.7 million to Allflight Corp. (the Company), a wholly
owned subsidiary of 8 Alpha, Inc. The Company is a repair station with approximately 35 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 secured by tooling and inventory, engines, and
spare parts. The loan has an interest rate equal to LIBOR plus 3.5% and matures on November 5,
2025. The Company may draw the loan proceeds in a single draw through November 19, 2020.
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.

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TREAS-Allflight-Transaction-Summary.pdf
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7b39f8249898915db2eb565397f5e05d52c96537c90d66f12291aa692c0bdd89
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TREAS-Allflight-Transaction-Summary.pdf
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home.treasury.gov
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