AAR prices $150 million add-on offering of senior notes due 2029

WOOD DALE, Ill. - Aviation services provider AAR CORP. (NYSE:AIR), with a market capitalization of $2.66 billion and currently trading near its InvestingPro Fair Value, has priced an offering of $150 million aggregate principal amount of 6.750% senior notes due 2029, the company announced Monday.

The additional notes are being issued at 102.000% of their principal amount, plus accrued interest from March 15, 2025, yielding 6.119% to maturity. They will be offered under an existing indenture dated March 1, 2024, through which the company previously issued $550 million of notes with the same terms. According to InvestingPro data, AAR maintains strong liquidity with a current ratio of 2.72, indicating robust ability to meet its short-term obligations.

AAR intends to use the net proceeds to repay outstanding borrowings under its unsecured revolving credit facility and to cover fees and expenses related to the offering, according to the company’s statement.

The transaction is expected to close on August 14, subject to customary closing conditions.

The notes and related guarantees will be offered and sold only to qualified institutional buyers in accordance with Rule 144A under the Securities Act and to certain non-U.S. persons in offshore transactions under Regulation S. They have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States without registration or an applicable exemption.

AAR, headquartered in the Chicago area, provides aerospace and defense aftermarket solutions through four operating segments: Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services. The company operates in over 20 countries serving both commercial and government customers.

The information in this article is based on a press release statement from AAR CORP.

In other recent news, AAR Corp reported robust financial results for the fourth quarter of its fiscal year 2025, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $1.16, exceeding the forecast of $1.00 by 16%. Additionally, AAR Corp’s revenue reached $755 million, which is 8.67% higher than projected. These strong financial results highlight the company’s solid performance. In another development, AAR Corp announced plans to offer $150 million in additional 6.750% senior notes due in 2029. These notes will be issued under an existing indenture and will share the same terms as the previously issued $550 million in senior notes. The offering is subject to market conditions and other factors. These recent developments reflect AAR Corp’s active financial management and strategic planning.

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