AIR Debt offering

AAR announces proposed add-on offering of $150 million of 6.750% senior notes due 2029

Published August 11, 2025 at 12:10 PM

WOOD DALE, Ill., Aug. 11, 2025 /PRNewswire/ -- AAR CORP. ("AAR" or the "Company") (NYSE: AIR), a leading provider of aviation services to commercial and government operators, MROs and OEMs, announced today that it intends to offer, subject to market conditions and other factors, $150...

Related Questions

How will the $150 million senior note offering affect AAR’s credit rating and cost of capital? What is the expected impact of the new debt on AAR’s leverage ratios (Debt/EBITDA, debt-to-equity) and covenant compliance? How does the 6.750% coupon compare to current market yields for comparable 2029 senior notes? What is the anticipated use of proceeds—refinancing existing debt, funding capital expenditures, or general corporate purposes? Will the proceeds be used to fund specific growth initiatives or acquisitions, and how will that influence earnings forecasts? What is the anticipated pricing and spread versus Treasuries and comparable issuers in the aviation services sector? How does this offering compare to recent debt issuances by competitors such as United Airlines, Delta, and other aviation service providers? What are the potential dilution or shareholder impact, if any, from the proceeds and any related equity components? How might this debt issuance affect the company’s dividend policy or share buyback plans? What are the market’s expectations for the price movement of AIR stock following the announcement? What are the covenant terms (e.g., covenants, call/put features, redemption options) and how might they affect future financing flexibility? What is the timeline for the offering, and what are the expected settlement dates and impact on cash flow?