AAR CORP. Completes Add-on Offering of 7.25% Senior Notes due 2022
Berenson & Company acted as financial advisor to AAR in connection with this offering.
WOOD DALE, Ill. - AAR CORP. (AIR) announced today that it has completed its previously announced add-on offering of $150,000,000 aggregate principal amount of its 7.25% Senior Notes due 2022 (the "Notes") in a private placement to eligible purchasers. The Notes were sold at a price equal to 107.5% of the principal amount thereof, for a yield to maturity of 6.12%. The Notes are senior unsecured obligations of AAR CORP. (the "Company") and are guaranteed by substantially all of the Company's subsidiaries.
The Notes were issued under the indenture dated as of January 23, 2012, as supplemented as of November 30, 2012 (the "Indenture"), pursuant to which the Company issued $175,000,000 aggregate principal amount of its 7.25% Senior Notes due 2022 (the "Existing Notes"). The Notes will be treated as a single series with the Existing Notes and have the same terms as those of the Existing Notes, except for certain provisions relating to registration rights. The Notes and the Existing Notes will vote as one class under the Indenture.
The Company will use the net proceeds of the offering to repay a portion of the borrowings under its unsecured revolving credit agreement and to pay related fees and expenses.
The Notes and the related guarantees were sold in a private placement in reliance on Rule 144A and Regulation S under the Securities Act of 1933, as amended (the "Securities Act"). The Notes and related guarantees have not been registered under the Securities Act or applicable state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws.
This press release is being issued pursuant to Rule 135c under the Securities Act, and is neither an offer to sell nor a 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 jurisdiction in which such offer, solicitation or sale is unlawful.
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. These forward-looking statements are based on beliefs of Company management, as well as assumptions and estimates based on information currently available to the Company, and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated, including those factors discussed under Item 1A, entitled "Risk Factors", included in the Company's Form 10-K for the fiscal year ended May 31, 2012. Should one or more of these risks or uncertainties materialize adversely, or should underlying assumptions or estimates prove incorrect, actual results may vary materially from those described. These events and uncertainties are difficult or impossible to predict accurately and many are beyond the Company's control. The Company assumes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. For additional information, see the comments included in AAR's filings with the Securities and Exchange Commission.