AAR prices $500 million senior notes offering; amends revolver

AAR has priced and upsized its offering of five year senior notes. The $550 million notes offering - upsized from $500 million - is priced at 6.750%. The company intends to use the note net proceeds to fund a portion of the purchase price of its pending acquisition of Triumph Group's product support business. Concurrently with the offering, AAR has also announced that it intends to amend its revolving credit facility to increase the lending commitments from $620 million to $795 million. AAR plans to fund the balance of the acquisition cost with cash on hand and borrowings under the upsized revolver. AAR is continuing its dispute with the Russian court surrounding four engines purchased from the now bankrupt VIM-AVIA. The company had been charged $11.2 million charge for the three engine purchase contract and is currently appealing against the $1.8 million charge relating to one engine. The company said in an 8K filing that the Russian court's hostile stance against the company has ""been caused by developments in the Russia/Ukraine conflict"" and by the sanctions imposed upon Russia.