XTI Aerospace, Inc. 8-K

What Happened
XTI Aerospace, through its subsidiaries Drone Nerds, LLC and Anzu Robotics, LLC, announced a secured asset-based revolving credit agreement with JPMorgan Chase Bank, N.A. dated February 11, 2026. The initial facility provides up to $20.0 million based on eligible accounts receivable and inventory, matures on February 11, 2029, and may be increased (with lender consent) by up to an additional $25.0 million. The company intends, subject to conditions, to use proceeds to repay roughly $10.5 million of prior loans from XTI to the subsidiaries and for general corporate purposes. The loans are guaranteed by the Loan Parties and secured by substantially all personal property of the grantors under a security agreement; a subordination agreement also subordinates certain creditor claims to the lender.

Key Details

• Facility size: up to $20.0M initial ABL revolving commitment; potential increase of up to $25.0M with lender consent.
• Maturity date: February 11, 2029.
• Intended use: general corporate purposes, refinancing existing indebtedness, and to repay ~$10.5M of prior intra-company loans.
• Interest and fees: revolving loans bear interest at CBFR (Adjusted REVSOFR30) + 2.0% margin; Protective Advances bear an extra +2.0% (i.e., CBFR + 4.0%); usual closing, commitment and L/C fees apply.
• Covenants and protections: customary affirmative/negative covenants; Fixed Charge Coverage Ratio must be at least 1.0x as of each month-end beginning Feb 28, 2026 (with a limited cure allowing equity issuance to the parent to cure shortfalls); lender remedies and higher default interest (additional 2% p.a.) on events of default.
• Other: availability may be used for letters of credit; borrow/repay/reborrow feature until maturity; voluntary prepayments permitted without penalty.

Why It Matters
This facility provides immediate secured liquidity to XTI’s drone subsidiaries, reduces reliance on intercompany borrowing (planned $10.5M repayment), and supports working capital and operations. However, the facility also places liens on substantially all of the borrowers’ personal property and imposes financial covenants (including a 1.0x fixed charge coverage ratio) and customary restrictions that could limit distributions, additional debt, or certain transactions by the affected entities. Investors should note the added leverage, covenant requirements, and the lender’s remedies on default—all of which can affect subsidiary flexibility and, indirectly, the parent company.