Aviation Distributors Granted Additional $1 Million Term Loan by its Lender.Business Editors LAKE FOREST, Calif.--(BUSINESS WIRE)--Feb. 4, 2000 Existing Credit Facility is Extended for 10 Years and Increased to $24 Million and Interest Rate is Cut Aviation Distributors Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :ADIN Adin (ā`dĭn), in the Bible, family that returned from Exile. ), a leading aircraft parts redistributor and provider of inventory management services to major commercial airlines worldwide, announced today that it has received an additional $1 million from its lender and has extended its $24 million credit facility for another 10 years. As a result of the Company's return to full compliance with its loan agreements, its lender has agreed to lower the previous interest rate of Prime plus 3 1/2% it has been charging Aviation Distributors during the past two years to Prime plus 1%. The lender has also agreed to eliminate certain borrowing restrictions on the Company's $24 million revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility that limited borrowings to $16 million - allowing full utilization of the $24 million credit facility. The Company will use the $1 million term loan and the increased loan utilization for general working capital purposes. Notable terms of the $1 million term loan include monthly &uot;interest only&uot; payments in year one and quarterly principal payments of $125,000 beginning in year two of the three-year term loan. In consideration of the new credit terms Credit Terms The conditions under which credit will be extended to a customer. The components of credit terms are: cash discount, credit period, net period. , negotiations for which were commenced in October October: see month. 1999, the Company has issued warrants to its lender to purchase 380,000 shares of its common stock at $0.25 per share (representing 9.9% of the Company's fully-diluted outstanding common shares) and has agreed to pay a $2 million fee to the lender payable in a balloon payment The final installment of a loan to be paid in an amount that is disproportionately larger than the regular installment. When a loan is made, repayment of the principal, which is the amount of the loan, plus the interest that is owed on it, is divided into installments due at at the end of the 10-year agreement. This fee will be charged to the Company's $24 million credit facility at the Bank Prime Rate and interest will be payable semi-annually. Commenting on this latest development, Aviation Distributors' Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack D. King stated, &uot;With the new term loan and interest rate cut, our lender has clearly signaled their continued confidence in the Company's immediate and future potential.&uot; About Aviation Distributors Inc. Aviation Distributors is a leading aircraft parts redistributor and provider of inventory management services to major commercial airlines worldwide. The Company deals directly with its customers throughout the world and has agents in Jordan, Indonesia, Malaysia, India, Pakistan, Chile, and Brazil with its headquarters in Lake Forest, Calif. |
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