AAR Issues $75 Million in Senior Notes
WOOD DALE, Ill., /PRNewswire/ -- AAR (NYSE: AIR), a leading provider of products and value-added services to the worldwide aerospace and aviation industry, announced today that it has completed a $75 million private placement of long-term debt. The deal consists of two tranches including $55 million of ten-year notes at 8.39% and $20 million of seven-year notes at 7.98%. The placement agent for the notes was Banc of America Securities, LLC.
Proceeds will be used to supplement the Company's existing capital structure in anticipation of the repayment of its $65 million 9.5% notes when they become due on November 1, 2001. After the repayment of the $65 million notes, interest expense will decrease $0.8 million annually.
"We are pleased by the confidence investors have shown in AAR by providing long-term capital to the Company at pricing and terms that give us the financial flexibility to execute our growth strategy," said David P. Storch, AAR president and CEO. "This transaction demonstrates AAR's continuing ability to secure funding from the capital markets."
AAR is the preeminent provider of products and value-added services to the worldwide aerospace/aviation industry. Products and services include proprietary inventory management and logistic support services, encompassing supply, repair and manufacture of spare parts and systems. Headquartered in Wood Dale, Illinois, AAR serves commercial and government aircraft fleet operators and independent service customers throughout the world. Further information can be found at www.aarcorp.com.
This press release contains certain statements relating to future results, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on beliefs of Company management as well as assumptions and estimates based on information currently available to the Company, and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated, depending on a variety of factors, including: implementation of information technology systems, integration of acquisitions, marketplace competition, economic and aviation/aerospace market stability and Company profitability. Should one or more of these risks or uncertainties materialize adversely, or should underlying assumptions or estimates prove incorrect, actual results may vary materially from those described.
SOURCE AAR CORP.
CONTACT: Dawn Kaiser, Director, Finance and Investor Relations of AAR, 630-227-2098, firstname.lastname@example.org
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