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Capital

AAR adds $550 million to revolver ahead of MRO Holdings deal

The amendment extends maturity to October 2031 and eases financial covenants as AAR prepares to acquire a controlling stake in the aircraft maintenance company.

AAR added $550 million to its revolving credit commitments on Oct. 23.1–2 The facility now totals $1.375 billion. Announcing the amendment Oct. 26, the company said the unsecured facility would help finance its pending MRO Holdings acquisition.2

AAR adds $550 million in revolving credit commitments

Revolving credit facility amendment, October 23, 2026

$550 millionIncrease in commitments
$1,375.0 millionTotal after the increase
October 2031New maturity (was Dec. 2027)

The 8-K and release do not specify how much of the revolver would fund the pending MRO Holdings acquisition.

Source: AAR Form 8-K and press release. As of October 26, 2026.

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The amendment also relaxed financial covenants, raising the maximum permitted leverage ratio to 5.50 to 1.00, subject to step-downs over time. It lowered the minimum interest coverage ratio to 2.00 to 1.00.1 The facility's maturity moves from December 2027 to October 2031.2

AAR agreed Sept. 28 to acquire a 65% controlling interest in MRO Holdings. The deal carries an implied enterprise value of $4.0 billion. The aircraft maintenance and modifications provider gets about 90% of its revenue from U.S. customers.3

In September, AAR outlined financing for the transaction, including related expenses: about $2.1 billion of new debt and about $780 million of equity issued to existing MRO Holdings shareholders. It also expected about $230 million in private-placement proceeds. The new debt is backed by a fully committed bridge facility that AAR intends to replace with permanent debt before closing.3 Neither the 8-K's description of the amendment nor the release specifies how much of the revolver would be used for the acquisition.1

AAR expects the acquisition to close in its fiscal third quarter ending February 2027, subject to regulatory approvals and other customary closing conditions.4

The amendment expressly permits the acquisition and its financing. Its effectiveness, and the availability or funding of borrowings, do not depend on the deal closing.1

Sources (4)
  1. AAR Form 8-K, Oct. 26, 2026 www.sec.gov
  2. AAR press release, Oct. 26, 2026 (Exhibit 99.1) www.sec.gov
  3. AAR acquisition press release, Sept. 28, 2026 (Exhibit 99.1) www.sec.gov
  4. AAR Form 8-K on the acquisition agreement www.sec.gov
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Capital

CesiumAstro closes $730 million round to support its own planned satellite constellation

The space communications supplier plans a 737-satellite constellation that would take it into operating its own infrastructure. Janus Henderson led the equity round.

CesiumAstro announced Nov. 5 that it closed $730 million in Series D financing. The round valued the company at more than $4.5 billion.1

CesiumAstro raises capital to support its planned satellite constellation

Series D financing and Synchronicity plans, announced Nov. 5, 2026

$730MClosed Series D financing
737 satellitesPlanned Synchronicity constellation

CesiumAstro says the capital will support Synchronicity deployment alongside technologies, manufacturing expansion, spacecraft development and international growth.

Source: CesiumAstro, Nov. 5, 2026. As of Nov. 6, 2026.

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Synchronicity would extend CesiumAstro's business from supplying space technologies and complete spacecraft to developing and operating its own space infrastructure. The planned 737-satellite constellation is intended for commercial, sovereign and defense missions.1

Janus Henderson led the equity round, with participants including Insight Partners, Sands Capital and Magnetar. The announcement also lists $100 million in debt financing through the Export-Import Bank of the United States and JPMorgan, without specifying whether that amount is included in the $730 million.1

CesiumAstro acquired Jariet Technologies, 1Aardvark and Vidrovr in the past 12 months, bringing together semiconductor, mission software and artificial intelligence capabilities.1

The company says the capital will support Synchronicity deployment alongside advanced technologies, U.S. manufacturing expansion, spacecraft development and international growth. It also announced a $500 million investment over five years to expand its Austin headquarters, including advanced manufacturing space.1

Sources (1)
  1. CesiumAstro, "CesiumAstro Secures $730 Million in Janus Henderson-Led Series D at a Valuation Above $4.5 Billion; Unveils Synchronicity Satellite Constellation Following Fully Successful Element-1 Mission," Nov. 5, 2026 cesiumastro.com
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Capital · Drones

Axon targets larger Skydio stake with $1.2 billion investment

Axon will also become the drone maker’s exclusive public safety distributor in the U.S. and Canada.

Axon announced a roughly $1.2 billion minority investment in Skydio on Nov. 5, 2026. It expects its ownership to reach about 37% on a fully diluted basis.1

Axon announced an incremental minority investment of about $1.2 billion in Skydio

Nov. 5, 2026

minority investmentabout $1.2 billionplanned

expected to raise its fully diluted ownership from about 15% (as of Sept. 30, 2026) to about 37%

public safetyU.S. and Canadaplanned

Axon will also become Skydio's exclusive distributor for public safety in the U.S. and Canada.

Axon expects the remaining transactions to close in Q4 2026 and Q1 2027, subject to customary closing conditions

Source: Axon Form 8-K and Exhibit 99.1, Nov. 5, 2026. Data as of Nov. 6, 2026.

Sources
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The investment would pair a larger minority stake with an exclusive public safety sales channel in the U.S. and Canada.1–2 The deal builds on a partnership already bringing Skydio drones to public safety agencies across the U.S. Axon describes it as an expansion of its Drone as First Responder program.2

The initial purchase closed on Nov. 5. Axon expects the remaining transactions to close during the fourth quarter of 2026 and first quarter of 2027, subject to customary closing conditions.1

The investment combines capital for Skydio with purchases from existing shareholders.2 The initial purchase of about $254.9 million in non-voting Series G preferred shares was made directly with Skydio.1 Part of the cash consideration is intended to fund innovation and product expansion at Skydio, Axon says.2

Sources (2)
  1. Axon Form 8-K, Nov. 5, 2026 www.sec.gov
  2. Exhibit 99.1, Axon press release, Nov. 5, 2026 www.sec.gov
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