AAR has priced an add-on offering of $150 million aggregate principal amount of 6.750% senior notes due 2029.
The notes were priced at 102.000% of face value, yielding 6.119% to maturity. The offering builds on AAR’s prior $550 million issuance under the same indenture dated March 1, 2024.
The new notes will carry identical terms to the existing securities, except for the issue date and pricing.
Proceeds from the sale will be used to repay borrowings under AAR’s unsecured revolving credit facility, as well as to cover transaction-related fees and expenses. The deal is expected to close August 14, 2025, subject to customary conditions.
A spokesperson for the company said banks involved in the notes offering were Wells Fargo, Bank of America, CIBC, Truist, PNC, and Goldman Sachs. They did not disclose the roles of the banks.
Additionally, the company said on August 12 it has acquired maintenance planning software company Aerostrat for a purchase price of $15 million plus contingent consideration of up to $5 million. The acquisition will “immediately” expand the reach of AAR's software offerings and the enterprise resource planning system (ERP) capabilities of AAR's Trax subsidiary.
“This acquisition of Aerosrat marks an important step in AAR's strategy to advance the next generation of maintenance products and services,” said AAR digital services SVP and Trax president Andrew Schmidt. “By bringing Aerostrat alongside Trax, we create opportunities for further integration and scope expansion for existing Trax customers as well as Aerostrat customers.”
“Combining this with the opportunity to work side by side with Trax, a long-time industry leader, is a huge honour that will surely take both solutions and teams to new heights,” Aerostrat CEO Elliot Margul.
Aerostrat's flagship tool Aerros provides long-range heavy maintenance planning solutions to operators. AAR said Aerros is “highly complementary” to Trax's ERP and line maintenance focussed planning applications.