# 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. Published 2026-10-26 by TGOs. Canonical: https://tgos.io/news/2026/10/26/aar-adds-550-million-to-revolver-ahead-of-mro/ AAR added $550 million to its revolving credit commitments on Oct. 23.[1][2] The facility now totals $1.375 billion.[2] Announcing the amendment Oct. 26, the company said the unsecured facility would help finance its pending MRO Holdings acquisition.[2] The amendment also relaxed financial covenants, raising the maximum permitted leverage ratio to 5.50 to 1.00, subject to step-downs over time.[1] 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.[3] The deal carries an implied enterprise value of $4.0 billion.[3] 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.[3] It also expected about $230 million in private-placement proceeds.[3] 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] ## Why it matters The amendment expressly permits the acquisition and its financing.[1] Its effectiveness, and the availability or funding of borrowings, do not depend on the deal closing.[1] ## Sources 1. AAR Form 8-K, Oct. 26, 2026 2. AAR press release, Oct. 26, 2026 (Exhibit 99.1) 3. AAR acquisition press release, Sept. 28, 2026 (Exhibit 99.1) 4. AAR Form 8-K on the acquisition agreement