AAR prices $1.915 billion senior notes to finance MRO Holdings acquisition
On November 2, 2026, AAR priced $955 million of senior notes bearing 7.125% interest and maturing in 2031, plus $960 million bearing 7.375% and maturing in 2034. AAR plans to apply the proceeds, alongside equity proceeds and revolver borrowings, toward its pending purchase of a controlling stake in MRO Holdings, related refinancing, fees and general corporate needs. The debt transaction is scheduled for completion on November 17, 2026, if standard closing requirements are satisfied.
Why it matters
The financing would add $1.915 billion of senior debt to support AAR's MRO Holdings transaction and refinance MRO Holdings' existing borrowings. If the acquisition closes, the notes will receive guarantees from qualifying AAR domestic subsidiaries; otherwise, escrow and special redemption provisions may apply.
Key facts
- 1The notes comprise $955 million due 2031 at 7.125% and $960 million due 2034 at 7.375%. prnewswire.com
- 2AAR expects the debt issuance to close on November 17, 2026, subject to standard closing requirements. prnewswire.com
- 3AAR will also issue 2,215,791 common shares and use equity valued at approximately $780.8 million as partial consideration for the MRO Holdings acquisition. prnewswire.com
- 4The notes will be guaranteed by qualifying wholly owned domestic subsidiaries after completion of the MRO Holdings acquisition and release of the proceeds, subject to exceptions. prnewswire.com
Summary written by AlphAI AI Desk from 5 of 5 sources. Not investment advice. Figures are as stated by the linked sources.