Nashville, Jan. 29 - AAR Corp. sold $75 million of 20-year convertible notes at par to yield 2.875% with a 30% initial conversion premium in the Rule 144A market via bookrunner Goldman Sachs & Co., according to market sources.
The company plans to use proceeds to repurchase accounts receivables that have been securitized, to repay a portion of higher interest rate debt and for general corporate purposes.
Wood Dale, Ill.-based AAR provides products and value-added services such as inventory management and spare parts repair to the aerospace and aviation industry.
Terms of the deal are:
| Issuer: | AAR Corp.
|
| Issue: | Convertible senior notes
|
| Bookrunner: | Goldman Sachs & Co.
|
| Amount: | $75 million
|
| Greenshoe: | $15 million
|
| Maturity: | Feb. 1, 2024
|
| Coupon: | 2.875%
|
| Price: | Par
|
| Yield: | 2.875%
|
| Conversion premium: | 30%
|
| Conversion price: | $18.59
|
| Conversion ratio: | 53.7924
|
| Pricing date: | Jan. 29
|
| Settlement date: | Feb. 3
|
| Distribution: | Rule 144A
|
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