AAR Corp plans to offer $150 million in additional senior notes

WOOD DALE, Ill. - Aviation services provider AAR Corp (NYSE:AIR), with a market capitalization of $2.65 billion and strong liquidity position as shown by a current ratio of 2.72, announced Monday its intention to offer $150 million in additional 6.750% senior notes due 2029, subject to market conditions and other factors.

The additional notes will be issued under an existing indenture dated March 1, 2024, through which the company previously issued $550 million in senior notes with the same interest rate and maturity date. According to the company, the new notes will share the same terms as the existing notes except for the issuance date and offering price.

AAR intends to use the net proceeds from this offering to repay outstanding borrowings under its unsecured revolving credit facility and cover fees and expenses related to the offering.

The notes and related guarantees will not be registered under the Securities Act of 1933 and may only be offered and sold to qualified institutional buyers under Rule 144A and to certain non-U.S. persons in offshore transactions in accordance with Regulation S.

AAR Corp describes itself as a global aerospace and defense aftermarket solutions company operating in over 20 countries through four segments: Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services.

The announcement was made in a press release statement from the Chicago-area headquartered company. For a comprehensive analysis of AAR Corp’s financial health (currently rated as FAIR) and detailed valuation metrics, investors can access the full InvestingPro Research Report, which is part of their coverage of over 1,400 US stocks.

In other recent news, AAR Corp reported a robust end to its fiscal year 2025, with earnings and revenue surpassing expectations in the fourth quarter. The company achieved an earnings per share (EPS) of $1.16, outperforming the projected $1.00 by 16%. Revenue reached $755 million, exceeding forecasts by 8.67%. These results indicate strong operational performance and have been well-received by the market. Investors have shown confidence in AAR Corp’s financial health following the announcement. The company’s ability to exceed earnings and revenue projections highlights its effective management strategies. These recent developments suggest a positive outlook for AAR Corp, as indicated by the strong financial results.

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