Aviation firm AAR slips after $249 mln stock offering priced

AAR

01/10/2025 12:09

** Shares of aerospace & defense firm AAR Corp AIR.N down 5.5% at $84.75 before the bell after equity raise

** Chicago area-based aviation services firm late Tues announced pricing 3 mln shares at $83 for deal size of $249 mln

** Offering price represents a 7.4% discount to stock's last sale on Tues

** Co plans to use expected net proceeds of about $239 mln to repay borrowings under its revolver and for general purposes, including future acquisitions

** Goldman Sachs, Jefferies and RBC acting as joint lead bookrunners for offering

** Co has ~36.1 mln shares outstanding for $3.2 bln market cap

** Shares on Tues rose for 7th straight day to finish at record high close, and extending YTD gain to 46%

** All 6 analysts covering the stock are bullish and median PT is $87.50, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))