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

Summary

A Treasury transaction summary for a loan totaling $4,026,705 to Aviation Management & Repairs, Inc., a repair station with approximately 6 U.S. employees in March 2020. The loan, made under section 4003(b)(1) of the CARES Act, is secured by aircraft, accounts receivable, ground support equipment, and engines and spare parts. It carries an annual interest rate equal to LIBOR plus 3.5% and matures on November 5, 2025, with a single draw available through November 19, 2020. 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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Cite this document

“U.S. Department of the Treasury: Aviation Management, ‘Transaction Summary.’” Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/u-s-department-of-the-treasury-aviation-management-transaction-summary-e70b5dc442/, SHA-256 98e5d9daa977c47ac96a869464c8b74b55f451dac40a3c08e83206c87579fc50.

Full text

                                    Transaction Summary

Treasury agreed to make a loan totaling $4,026,705 to Aviation Management & Repairs, Inc. (the
Company), a repair station with approximately 6 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 aircraft, accounts receivable, ground
support equipment, and engines and spare parts. It has an annual 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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File: TREAS-Aviation-Management-Transaction-Summary.pdf
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SHA-256: 98e5d9daa977c47ac96a869464c8b74b55f451dac40a3c08e83206c87579fc50
Our copy: TREAS-Aviation-Management-Transaction-Summary.pdf
Original: home.treasury.gov