AAR CORP. (NYSE:AIR) Files An 8-K Entry into a Material Definitive Agreement

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AAR CORP. (NYSE:AIR) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01. Entry into a Material Definitive Agreement.

On October18, 2017, AAR CORP., as the parent guarantor (“AAR”) and AAR Canada Holdings ULC (the “Company”), as borrower, entered into a credit agreement with the Canadian Imperial Bank of Commerce, as lender (the “ Credit Agreement”). The Credit Agreement creates a Canadian $31 million term loan. The net proceeds of the loan will be used to pay a portion of the amount outstanding under AAR’s Credit Agreement dated as of April12,2011 among, inter alia, AAR, and Bank of America,N.A., as administrative agent, as amended through November1,2016 that was borrowed for the purpose of AAR’s previously disclosed acquisition of two maintenance, repair and overhaul (“MRO”) facilities — one located at Trois-Rivières Airport in Quebec and the other located at Windsor International Airport in Ontario — from Premier Aviation, and for related corporate purposes. The Credit Agreement expires on November1, 2021 unless terminated earlier to the terms of the Credit Agreement. Borrowings under the Credit Agreement bear interest at the offered fluctuating Canadian Dollar Offer Rate (“CDOR”) plus 125 to 225 basis points based on certain financial measurements if a CDOR bankers’ acceptances loan, or at the offered fluctuating Prime Rate plus 25 to 125 basis points if a Prime Rate loan based on certain financial measurements. The Credit Agreement in part requires AAR and the Company to comply with certain financial covenants and certain affirmative and negative covenants. The Credit Agreement also required significant domestic subsidiaries of AAR to provide a guarantee of payment under the Credit Agreement.

The foregoing description of the Credit Agreement is qualified in its entirety by reference to the full text of the Credit Agreement. A copy of the Credit Agreement is included herein as Exhibit10.1 and is incorporated herein by reference.

Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information set forth under Item 1.01 of this report is hereby incorporated into this Item 2.03 by reference.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

ExhibitNo.

Description

10.1

Credit Agreement among AAR CORP., as parent guarantor, AAR Canada Holdings ULC, as borrower, and Canadian Imperial Bank of Commerce, as lender, dated as of October18, 2017.


AAR CORP Exhibit
EX-10.1 2 a17-24244_1ex10d1.htm EX-10.1 Exhibit 10.1   [EXECUTION COPY]       CREDIT AGREEMENT   AMONG   AAR CORP. AS THE PARENT GUARANTOR   AND   AAR CANADA HOLDINGS ULC AS BORROWER   AND   CANADIAN IMPERIAL BANK OF COMMERCE AS LENDER   DATED AS OF OCTOBER 18,…
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About AAR CORP. (NYSE:AIR)

AAR CORP. (AAR) is a provider of services and products to the commercial aviation and government and defense markets. The Company operates in two segments: Aviation Services, which consists of supply chain and maintenance, repair and overhaul (MRO) activities, and Expeditionary Services, which includes airlift and mobility activities. Its services and products include aviation supply chain and parts support programs; MRO of aircraft and landing gear; design and manufacture of specialized pallets, shelters and containers; expeditionary airlift services; aircraft modifications, and aircraft and engine sales and leasing. It serves commercial, defense and governmental aircraft fleet operators, original equipment manufacturers and independent service providers around the world. Its landing gear overhaul facility is in Miami, Florida, where it repairs and overhauls landing gear, brakes and actuators for various types of commercial and military aircraft.