AAR has priced an underwritten registered public offering of 3 million shares of its common stock at a public offering price of $83.00 per share.
The underwriters have a 30-day option to purchase up to an additional 450,000 shares from the company at the public offering price.
AAR estimates that the net proceeds from the offering, after deducting the underwriting discounts and commissions, will be approximately $239 million, or $274.9 million if the underwriters exercise their option to purchase additional shares in full.
The shares are expected to be delivered on Thursday (October 2), subject to customary closing conditions.
The company intends to use the net proceeds of the offering to repay outstanding borrowings under its unsecured revolving credit facility and for general corporate purposes, which may include funding future acquisitions.
Goldman Sachs, Jefferies and RBC Capital Markets are acting as joint lead book-running managers for the offering, while BofA Securities, Truist Securities, and Wells Fargo Securities are acting as joint book-running managers for the offering.
The Benchmark Company, CIBC Capital Markets, KeyBanc Capital Markets, PNC Capital Markets, Samuel A. Ramirez & Company, and William Blair & Company are acting as co-managers for the offering.
AAR, based in the US state of Illinois, is a provider of aviation services to commercial and government operators, MROs, and OEMs.