The 100 bps rate reduction on $1.345B in term loans will lower annual interest cost by roughly $13-14M pre-tax, providing a modest tailwind to earnings. This is a liability management transaction with no change to principal outstanding or leverage. Monitor upcoming quarterly reports for the actual interest expense savings and any updates on the company's broader debt structure, including the $1.3B revolving credit facility added in March 2026.
Price Chart
Executive Summary
Madison Air Solutions Corp's subsidiary refinanced its $1.345625 billion term loan facility, reducing the interest rate spread by 100 basis points from Term SOFR + 2.75% to Term SOFR + 1.75%. The transaction involved a cashless roll of the existing 2025 Repriced Incremental Term Loans into 2026 Repriced Incremental Term Loans at the same principal amount, funded with balance sheet cash. This is a debt management optimization that lowers interest expense without increasing overall leverage or principal outstanding. The filing omits any financial statements or operational performance data.
Key Financial Metrics
Key Facts
- Seventh Amendment to Credit and Guaranty Agreement executed June 4, 2026
- New 2026 Repriced Incremental Term Loan facility for $1,345,625,000 created
- Interest rate reduced from Term SOFR + 2.75% to Term SOFR + 1.75%
- Proceeds used to refinance existing 2025 Repriced Incremental Term Loans in full
- Existing 2025 Repriced Incremental Term Loans of $1,345,625,000 reduced to $0 after the amendment
- Cashless roll mechanism used; no change in aggregate principal amount outstanding
- Applicable margin for 2026 Repriced Incremental Term Loans: 1.75% for Term SOFR Rate Loans, 0.75% for Base Rate Loans
- 100 bps reduction in interest rate spread on the $1.345 billion term loan
- Wells Fargo acted as administrative agent, New Incremental Term Lender, and Purchasing Term Lender
Financial Impact
Annual interest expense reduction of approximately $13.5 million pre-tax based on $1.345625B principal at 100 bps spread reduction
Risk Factors
- No new operational or financial performance data disclosed in this filing
- The repricing does not address any underlying business or margin trends
- Short-term call protection: 1% prepayment premium applies for six months on any repricing transaction
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-041148 |
| Document: mair-20260604.htm | 0001628280-26-041148 |
| Document: 0001628280-26-041148-index-headers.html | 0001628280-26-041148 |
| Document: 0001628280-26-041148-index.html | 0001628280-26-041148 |
| Document: 0001628280-26-041148.txt | 0001628280-26-041148 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 5d ago | Press Release | $23.08 $22.76 | ▼ −1.39% | ▼ −0.86% | $23.75 (+2.90%) |
Oct 12, 2026 15d ago | Institutional Cluster | $23.29 $24.08 | ▲ +3.39% | ▲ +3.40% | $23.75 (+1.98%) |
Aug 27, 2026 8w ago | Insider Cluster | $26.33 $26.40 | ▲ +0.27% | ▲ +0.56% | $23.75 (−9.80%) |
Aug 25, 2026 9w ago | 8-K | $27.99 $28.51 | ▲ +1.86% | ▲ +1.84% | $23.75 (−15.15%) |
Aug 17, 2026 10w ago | 8-K | $29.57 $27.44 | ▼ −7.20% | ▼ −6.53% | $23.75 (−19.68%) |
Jul 30, 2026 12w ago | 8-K | $29.14 $29.06 | ▼ −0.27% | ▼ −0.98% | $23.75 (−18.50%) |
Jun 18, 2026 18w ago | 3 | $38.13 $38.56 | ▲ +1.13% | ▲ +1.44% | $23.75 (−37.71%) |
Jun 16, 2026 19w ago | 8-K | $38.15 $37.44 | ▼ −1.86% | ▼ −0.61% | $23.75 (−37.75%) |
Jun 5, 2026 20w ago | 8-K | $40.14 $39.59 | ▼ −1.37% | ▼ −1.60% | $23.75 (−40.83%) |
May 29, 2026 21w ago | Press Release | $43.47 $43.86 | ▲ +0.90% | ▲ +0.62% | $23.75 (−45.36%) |
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