U.S. Department of the Treasury: Core Avionics Industrial, "Transaction Summary"

Summary

The U.S. Department of the Treasury's transaction summary for a loan totaling $6 million to Core Avionics & Industrial, Inc., a business critical to maintaining national security with approximately 25 U.S. employees in March 2020. The loan was made under section 4003(b)(3) of the CARES Act and is unsecured. It has an annual interest rate equal to LIBOR plus 5.5%, matures on November 5, 2025, and was funded in full at close. The loan constitutes senior indebtedness of the Company, and Treasury will receive 3% payment-in-kind annual interest.

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“U.S. Department of the Treasury: Core Avionics Industrial, ‘Transaction Summary.’” Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/u-s-department-of-the-treasury-core-avionics-industrial-transaction-su-ddfec68c35/, SHA-256 77d4b957b74625a806792d0981a5906ced18b5962fd0ac8106bc8429ca485552.

Full text

                                     Transaction Summary

The U.S. Department of the Treasury agreed to make a loan totaling $6 million to Core Avionics
& Industrial, Inc. (the Company), a business critical to maintaining national security with
approximately 25 U.S. employees in March 2020.

Treasury made the loan pursuant to section 4003(b)(3) 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 November 5, 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.

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Our copy: TREAS-Core-Avionics-Industrial-Transaction-Summary.pdf
Original: home.treasury.gov