AAR Prices Upsized Offering of $550M 6.750% Senior Notes Due 2029 To Finance Triumph Product Support Acquisition
Portfolio Pulse from Benzinga Newsdesk
AAR has upsized its offering of senior notes to $550 million at a 6.750% interest rate, due 2029, to finance the acquisition of Triumph Group's Product Support business. The offering, initially set at $500 million, is expected to close by March 1, 2024. The proceeds will fund a portion of the acquisition cost.
February 15, 2024 | 7:44 am
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POSITIVE IMPACT
AAR's upsized offering of $550M in senior notes at 6.750% due 2029 is aimed at financing the acquisition of Triumph Group's Product Support business.
The upsizing of the offering indicates a strong commitment to financing the acquisition, potentially leading to growth and expansion for AAR. This strategic move could be viewed positively by investors, likely leading to a short-term uptick in AAR's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
Triumph Group is selling its Product Support business to AAR, financed through AAR's upsized offering of $550M in senior notes.
While the sale of the Product Support business to AAR could streamline Triumph Group's operations and focus, the direct impact on TGI's stock price in the short term is uncertain. The transaction could be seen as neutral by investors until further details emerge on how the proceeds will be utilized.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70