AAR Corp. has amended its existing revolving credit facility, increasing the total available credit and extending the maturity date. The amendment, dated October 23, 2026, was entered into by the Wood Dale, Illinois-based company and its lenders, with Wells Fargo Bank, N.A. serving as the administrative agent.
The Amended Revolving Credit Facility now features aggregate commitments of $1,375.0 million. This represents an increase of $550 million from the previous commitment level of $825 million. The maturity date of the facility has been extended from December 2027 to the fifth anniversary of the amendment closing date, which is October 2031.
Financial covenants were also adjusted as part of the agreement. The maximum leverage ratio permitted under the facility was increased to 5.50 to 1.00, subject to step-downs over time. Additionally, the minimum interest coverage ratio was decreased to 2.00 to 1.00.
Borrowings under the facility will bear interest at a variable rate based on SOFR plus 125 to 225 basis points, or at the offered fluctuating base rate plus 25 to 125 basis points if a base rate loan is chosen. The amendment expressly permits the financing of AAR's pending acquisition of a controlling interest in MRO Holdings, Inc.
Wells Fargo Bank, N.A. served as the Left Lead Arranger and Administrative Agent for the transaction. The company noted that the effectiveness of the amendment is not conditioned upon the completion of the MRO Holdings acquisition.
