AAR releases details about $400 million five-year unsecured revolver

By Angela McDaniels

Tacoma, Wash., April 14 - AAR Corp. said the initial pricing for its new $400 million five-year senior unsecured revolving credit facility is Libor plus 175 basis points with a 30 bps commitment fee.

The company entered into the revolver on Tuesday, announced it in a news release on Wednesday and released further details in an 8-K filing with the Securities and Exchange Commission on Thursday.

Pricing can range from Libor plus 125 bps to 225 bps, and the commitment fee ranges from 20 bps to 40 bps. Both are based on the company's total debt to EBITDA ratio.

Bank of America, NA is the administrative agent. Wells Fargo Bank, NA and RBS Citizens, NA are the co-syndication agents, and U.S. Bank NA is the documentation agent. Bank of America Merrill Lynch is the lead arranger and bookrunner.

There is a $50 million accordion feature.

The credit agreement includes a fixed charge coverage ratio, a leverage ratio and a minimum tangible net worth.

Proceeds were used to replace an existing $250 million revolver that was set to mature later this year.

AAR is a Wood Dale, Ill.-based provider of products and value-added services to the aerospace and government and defense industries.

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