AAR announces proposed add-on offering of $150 million of 6.750% senior notes due 2029
AAR Corp (NYSE:AIR), a leading aviation services provider, has announced plans to offer $150 million in additional 6.750% senior notes due 2029. These Additional Notes will be issued under the same indenture as the company's existing $550 million senior notes with identical terms, except for issuance date and offering price.
The company plans to use the proceeds to repay outstanding borrowings under its unsecured revolving credit facility and cover offering-related expenses. The Notes and related guarantees will be offered exclusively to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S of the Securities Act.
AAR Corp (NYSE:AIR), un importante fornitore di servizi aeronautici, ha annunciato l'intenzione di offrire ulteriori 150 milioni di dollari di senior notes al 6,750% con scadenza 2029. Questi Titoli Aggiuntivi saranno emessi con lo stesso atto di indenture delle senior notes esistenti da 550 milioni di dollari, con termini identici salvo la data di emissione e il prezzo di offerta.
L'azienda prevede di utilizzare il ricavato per rimborsare i finanziamenti in essere sul proprio credito revolving non garantito e per coprire le spese dell'offerta. I Titoli e le garanzie correlate saranno offerti esclusivamente ad acquirenti istituzionali qualificati ai sensi della Rule 144A e a persone non statunitensi ai sensi del Regulation S del Securities Act.
AAR Corp (NYSE:AIR), un destacado proveedor de servicios aeron谩uticos, ha anunciado planes de ofrecer 150 millones de d贸lares adicionales en obligaciones senior al 6,750% con vencimiento en 2029. Estas Notas Adicionales se emitir谩n bajo el mismo contrato de emisi贸n que las notas senior existentes de 550 millones de d贸lares, con t茅rminos id茅nticos, salvo la fecha de emisi贸n y el precio de oferta.
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AAR Corp (NYSE:AIR), un important prestataire de services a茅ronautiques, a annonc茅 son intention d'offrir 150 millions de dollars suppl茅mentaires d'obligations senior 脿 6,750% arrivant 脿 茅ch茅ance en 2029. Ces Notes additionnelles seront 茅mises en vertu du m锚me acte d'indenture que les Notes senior existantes de 550 millions de dollars, avec des conditions identiques, 脿 l'exception de la date d'茅mission et du prix d'offre.
La soci茅t茅 pr茅voit d'utiliser le produit pour rembourser les emprunts en cours au titre de sa facilit茅 de cr茅dit renouvelable non garantie et couvrir les frais li茅s 脿 l'offre. Les Notes et les garanties associ茅es seront offertes exclusivement aux investisseurs institutionnels qualifi茅s en vertu de la Rule 144A et aux personnes non am茅ricaines en vertu de la Regulation S du Securities Act.
AAR Corp (NYSE:AIR), ein f眉hrender Anbieter von Luftfahrt-Dienstleistungen, hat Pl盲ne angek眉ndigt, zus盲tzliche Senior Notes 眉ber 150 Millionen US-Dollar mit 6,750% Zinsen und F盲lligkeit 2029 anzubieten. Diese zus盲tzlichen Schuldverschreibungen werden unter demselben Indenture wie die bestehenden Senior Notes 眉ber 550 Millionen US-Dollar begeben und weisen identische Bedingungen auf, mit Ausnahme des Ausgabedatums und des Angebotspreises.
Das Unternehmen beabsichtigt, die Erl枚se zur Tilgung ausstehender Kredite aus seiner unbesicherten revolvierenden Kreditfazilit盲t sowie zur Deckung anbietungsbezogener Kosten zu verwenden. Die Notes und die damit verbundenen Garantien werden ausschlie脽lich qualifizierten institutionellen K盲ufern gem盲脽 Rule 144A und Nicht鈥慤S鈥慞ersonen gem盲脽 Regulation S des Securities Act angeboten.
- None.
- Increases company's total debt burden with additional $150 million in notes
- Additional interest expenses will impact cash flow
- Notes are being issued in a high interest rate environment at 6.750%
Insights
AAR Corp is raising $150M in additional debt to refinance existing credit facility borrowings, which is balance sheet restructuring without changing total leverage.
AAR Corp is proposing an add-on offering of
The purpose of this debt issuance is straightforward balance sheet management rather than expansion capital. The company explicitly states it will use proceeds to repay outstanding borrowings under its unsecured revolving credit facility and cover offering expenses. This represents a liability restructuring rather than an increase in overall leverage - essentially switching from one form of debt to another.
This type of refinancing typically occurs for several strategic reasons: to extend debt maturity profiles, secure fixed interest rates in a potentially changing rate environment, or increase financial flexibility by freeing up revolving credit capacity. By repaying the revolving credit facility, AAR maintains that available borrowing capacity for future operational needs or potential strategic opportunities.
For investors, this transaction appears neutral as it doesn't fundamentally alter AAR's capital structure or overall debt burden. The company is essentially replacing variable-rate bank debt with fixed-rate notes, potentially locking in current interest rates and extending maturity profiles. The offering is being conducted through private placement to qualified institutional buyers rather than a public offering, which is standard practice for many corporate debt issuances.
The Company intends to use the net proceeds of the proposed senior notes offering to repay outstanding borrowings under its unsecured revolving credit facility and to pay fees and expenses incurred in connection with the offering.
The Notes and the related guarantees have not been and will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), any state securities laws or the securities laws of any other jurisdiction. The Notes and the related guarantees may not be offered or sold in
This press release is neither an offer to sell, nor the solicitation of an offer to buy, the Notes or any other securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, the Notes or any other securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful.
About AAR
AAR is a global aerospace and defense aftermarket solutions company with operations in over 20 countries. Headquartered in the
Forward-Looking Statements 听 This press release contains certain statements relating to future results, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995, which reflect management's expectations about future conditions, including, but not limited to, intentions regarding the consummation of the proposed senior notes offering and the intended use of proceeds thereof. 听 Forward-looking statements often address our expected future operating and financial performance and financial condition, or targets, goals, commitments, and other business plans, and often may also be identified because they contain words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "likely," "may," "might," "plan," "potential," "predict," "project," "seek," "should," "target," "will," "would," or similar expressions and the negatives of those terms. 听 These forward-looking statements are based on the beliefs of Company management, as well as assumptions and estimates based on information available to the Company as of the dates such assumptions and estimates are made, and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated, depending on a variety of factors, including: (i) factors that adversely affect the commercial aviation industry; (ii) adverse events and negative publicity in the aviation industry; (iii) a reduction in sales to the 听 For a discussion of these and other risks and uncertainties, refer to our Annual Report on Form 10-K, Part I, "Item 1A, Risk Factors" and our other filings filed from time to time with the |
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