Series A convertible preferred shares are sold at $10.00 each
By Devika Patel
Knoxville, Tenn., May 26 – Air Industries Group, Inc. negotiated a $7 million private placement of series A convertible preferred stock on May 25, according to an 8-K filed Thursday with the Securities and Exchange Commission. It has commitments for $4,522,500 of the preferreds.
The company will sell 700,000 preferreds at $10.00 apiece. Each preferred is convertible into common stock at $4.92 per share, which is identical to the May 24 closing share price.
Michael N. Taglich will invest $1.1 million and Robert F. Taglich will invest $650,000.
Craig-Hallum Capital Group LLC and Taglich Brothers, Inc. are the agents.
As a condition to the offering, the company will amend its revolving credit, term loan and security agreement of up to $40,388,000 with PNC Bank to extend the maturity date of the credit agreement to April 30, 2018 from Nov. 30, 2016. In addition, the company’s four term loans with PNC will be consolidated into a single term loan of $7,388,000 to be paid in 60 monthly instalments. The company also agreed to repay the $12.5 million of excess advances under the loan with an initial $1.5 million principal payment and a $100,000 principal payment each Monday after June 6, 2016.
Bay Shore, N.Y.-based Air Industries is an aerospace and defense company.
| Issuer: | Air Industries Group, Inc.
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| Issue: | Series A convertible preferred stock
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| Amount: | $7 million
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| Preferreds: | 700,000
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| Price: | $10.00
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| Conversion price: | $4.92
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| Agents: | Craig-Hallum Capital Group LLC and Taglich Brothers, Inc.
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| Investors: | Michael N. Taglich (for $1.1 million) and Robert F. Taglich (for $650,000)
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| Warrants: | No
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| Pricing date: | May 25
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| Stock symbol: | NYSE: AIRI
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| Stock price: | $4.92 at close May 24
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| Market capitalization: | $37.5 million
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