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WOOD DALE, Ill. - Aviation services provider AAR CORP. (NYSE:AIR) announced Monday the pricing of its underwritten public offering of 3 million shares of common stock at $83 per share, expected to generate approximately $239 million in net proceeds after underwriting discounts and commissions. The offering comes as the stock trades near its 52-week high of $89.69, having delivered an impressive 62% return over the past six months. According to InvestingPro analysis, the company’s current market capitalization stands at $3.1 billion.
The offering, scheduled to close around Thursday, includes a 30-day option for underwriters to purchase up to an additional 450,000 shares, which would increase net proceeds to approximately $274.9 million if fully exercised.
AAR intends to use the proceeds to repay outstanding borrowings under its unsecured revolving credit facility and for general corporate purposes, which may include funding future acquisitions, according to the company’s press release statement.
Goldman Sachs & Co. LLC, Jefferies and RBC Capital Markets are serving as joint lead book-running managers for the offering, with BofA Securities, Truist Securities and Wells Fargo Securities acting as additional joint book-running managers.
The offering is being made pursuant to a shelf registration statement on Form S-3 that became automatically effective upon filing with the Securities and Exchange Commission on July 19, 2023.
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 currently operates in more than 20 countries, serving both commercial and government customers.
In other recent news, AAR Corp reported impressive financial results for the first quarter of fiscal 2026, with adjusted earnings per share reaching $1.08, surpassing the forecasted $1.00. The company’s revenue also exceeded expectations, coming in at $740 million compared to the anticipated $691.5 million. Additionally, AAR Corp has announced the acquisition of American Distributors Holding Co., LLC for $146 million, aiming to expand its parts distribution business. In a strategic move, AAR launched a public offering of 3 million shares of common stock, with plans to use the proceeds for debt repayment and potential future acquisitions. The company has also granted underwriters a 30-day option to purchase an additional 450,000 shares. Furthermore, Truist Securities raised its price target for AAR Corp from $81 to $90, maintaining a Buy rating due to the strong quarterly performance. These developments highlight AAR Corp’s ongoing efforts to strengthen its market position and financial health.
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