AAR CORP. prices $1.9 billion in senior notes to fund MRO Holdings acquisition
AAR CORP. has priced $1.915 billion in senior notes across two tranches to finance its pending acquisition of a majority stake in MRO Holdings.
AAR CORP. announced the pricing of $955 million in senior notes due 2031 at a 7.125% interest rate and $960 million in senior notes due 2034 at 7.375%. The offering is scheduled to close on November 17, 2026.
The proceeds, combined with capital from a private equity placement and existing credit facilities, are designated to fund the acquisition of MRO Holdings. The capital will cover the cash consideration for the purchase, the refinancing of MRO Holdings’ existing debt, and transaction-related expenses. Additionally, the company will issue approximately $780.8 million in equity as part of the acquisition terms.
To mitigate risk, the company has established escrow procedures for the note proceeds. If the bond issuance closes before the acquisition is finalized, the funds will be held in segregated accounts until conditions for the merger are met, with provisions for a special mandatory redemption should the acquisition not proceed.