Published on 4/10/2013 in the Prospect News High Yield Daily.
New Issue: AAR prices upsized $150 million tap of 7¼% notes due 2022 at 107.5 to yield 5.864%
By Paul A. Harris
Portland, Ore., April 10 - AAR Corp. priced an upsized $150 million add-on to its 7¼% senior notes due Jan. 15, 2022 (Ba3/BB/) at 107.50 on Wednesday, according to a syndicate source.
The reoffer price came on top of the price talk, and it rendered a 5.864% yield to worst.
BofA Merrill Lynch, Wells Fargo Securities LLC and RBS Securities Inc. were the joint bookrunners for the quick-to-market add-on, which was upsized from $125 million.
The Wood Dale, Ill.-based provider of products and services to the worldwide aviation and government defense markets plans to use the proceeds to repay a portion of its revolver.
| Issuer: | AAR Corp.
|
| Face amount: | $150 million, increased from $125 million
|
| Proceeds: | $161.25 million
|
| Maturity: | Jan. 15, 2022
|
| Security description: | Add-on to the 7¼% senior notes due Jan. 15, 2022
|
| Bookrunners: | BofA Merrill Lynch, Wells Fargo Securities LLC, RBS Securities Inc.
|
| Coupon: | 7¼%
|
| Price: | 107.50
|
| Yield to worst: | 5.864%
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Jan. 15, 2017, then callable at 103.625, 102.417, 101.208, par on and after Jan. 15, 2020
|
| Equity clawback: | 35% at 107.25 until Jan. 15, 2015
|
| Investor put: | 101% upon change of control
|
| Trade date: | April 10
|
| Settlement date: | April 15 with accrued interest
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A with registration rights and Regulation S
|
| Price talk: | 107.50 area
|
| Marketing: | Quick to market
|
| Original issue: | $175 million issue priced at 98.268 to yield 7½% in January 2012
|
| Fungibility: | Upon registration the new notes will be fungible with the existing notes
|
| Total issue size: | $325 million
|
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