AAR Expands Revolver to $1.375B, Extends Maturity to 2031 Ahead of MRO Holdings Deal
AIR sits 26% above its 52-week low of $76.1.
Summary
AAR amended its revolver to $1.375 billion from $825 million and extended maturity to October 2031, with covenant relief sized to accommodate the pending MRO Holdings acquisition.
Key Events · Financing and Capital Events · AIR
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Revolver Upsized by $550 Million
Aggregate commitments rose to $1,375.0 million from $825.0 million, with 100% participation from the prior bank group plus two new lenders.
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Maturity Extended to October 2031
Maturity moved from December 14, 2027 to the fifth anniversary of the October 23, 2026 closing date.
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Covenants Loosened for MRO Deal
Maximum leverage ratio raised to 5.50 to 1.00 with step-downs and minimum interest coverage cut to 2.00 to 1.00; the agreement expressly permits the pending MRO Holdings acquisition and related financing.
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Pricing and Upfront Fee
Borrowings bear SOFR plus 125-225 bps (base rate plus 25-125 bps) based on leverage, plus a 0.20% non-refundable upfront fee on aggregate commitments.
Analysis · AIR · Manufacturing
AAR has secured $550 million of additional revolver capacity and pushed maturity out four years to October 2031, while loosening its leverage covenant to 5.50x with step-downs and cutting the interest coverage floor to 2.00x. The amendment explicitly carves out room for the pending $4.0 billion MRO Holdings acquisition and related financing, so the balance sheet is now sized for the deal. Pricing of SOFR plus 125-225 bps is a modest cost for the flexibility, and the 0.20% upfront fee is a one-time charge on commitments. Because the facility is not conditioned on the acquisition closing, the capacity stands regardless.
How filings like this one have moved
In the 30 days to Oct 26, 2026, 29.9% of the 1374 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.12%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, AIR was trading at $96.05 on NYSE in the Manufacturing sector, with a market capitalization of approximately $3.9B. The 52-week trading range was $76.10 to $154.00. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.