AAR Corp. has increased commitments under its unsecured revolving credit facility by $550 million to $1.375 billion and extended its maturity from December 2027 to October 2031. The Wood Dale, Illinois-based aviation aftermarket company is arranging the expanded financing to support its pending acquisition of a controlling interest in aircraft maintenance, repair and overhaul provider MRO Holdings.
The revised facility increases AAR’s available committed liquidity by approximately 67% while preserving its unsecured structure. Wells Fargo is serving as left lead arranger and administrative agent, with the company’s existing bank group and two additional lenders participating.
The financing amendment and any borrowing are not conditional on completion of the MRO Holdings transaction. AAR has not disclosed how much it has drawn under the facility or identified all participating lenders.
The amended agreement permits a maximum leverage ratio of 5.50-to-1.00 and requires minimum interest coverage of 2.00-to-1.00. Interest-rate margins adjust according to leverage, with the revised terms providing a longer financing horizon for AAR’s growth strategy and the proposed acquisition.