AAR CORP. has entered into an amendment to its revolving credit facility, increasing the aggregate commitments to $1.375 billion and extending the maturity date. The amendment also modifies certain financial covenants and pricing terms, in part to support the company's previously announced pending acquisition of a controlling interest in MRO Holdings, Inc.
Key Details
- Increased Facility Size: Aggregate commitments under the amended revolving credit facility were increased to $1.375 billion.
- Maturity Extension: The maturity date was extended to October 23, 2031.
- Covenant Adjustments: The amendment increased the maximum permitted leverage ratio to 5.50 to 1.00 (subject to future step-downs) and decreased the minimum interest coverage ratio to 2.00 to 1.00.
- Acquisition Support: The changes expressly permit the financing transactions related to the pending acquisition of a controlling interest in MRO Holdings, Inc.