AAR pricing $125 million tap of 7¼% senior notes due 2022 Wednesday

By Paul A. Harris and Aleesia Forni

Virginia Beach, Va., April 10 - AAR Corp. is set to sell a $125 million add-on to its 7¼% senior notes due Jan. 15, 2022 (existing ratings Ba3/BB) on Wednesday, according to a market source.

An investor call took place at 11 a.m. ET.

BofA Merrill Lynch, Wells Fargo Securities LLC and RBS Securities Inc. are the joint bookrunners.

The Rule 144A with registration rights notes will be callable on Jan. 15, 2017 at 103.625.

The notes feature a 101% poison put.

Proceeds will be used to repay a portion of the company's revolving credit facility.

The provider of products and services to the worldwide aviation and government defense markets priced the original $175 million issue at 98.268 to yield 7½% in January 2012.

Upon registration, the new notes will be fungible with the existing notes.

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