On January 23, 2012, AAR Corp. completed an offering of $175.0 million aggregate principal amount of its 7 1/4% Senior Notes due 2022. The Notes were sold to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended, and outside the United States to non-U.S. persons in accordance with Regulation S under the Securities Act. The Notes were sold at a price equal to 98.268% of the principal amount thereof, for a yield to maturity of 7.50%. The net proceeds of the offering of the Notes will be used to repay a portion of the borrowings under the company's revolving credit agreement incurred to fund the company's December 2011 acquisition of Telair International GmbH and Nordisk Aviation Products AS from Teleflex Incorporated. The Notes bear interest at a rate of 7 1/4% per year, payable semi-annually, in cash in arrears, on January 15 and July 15 of each year, commencing July 15, 2012. The Notes will mature on January 15, 2022. Prior to January 15, 2015, AAR may redeem up to 35% of the aggregate principal amount of the Notes with the net cash proceeds of certain equity offerings at a redemption price of 107.25% of the principal amount thereof, plus accrued and unpaid interest and additional interest, if any, to the redemption date. At any time prior to January 15, 2017, the company may redeem the Notes, in whole or in part, at a redemption price equal to 100% of the principal amount of the Notes redeemed, plus a make-whole premium, plus any accrued and unpaid interest and additional interest, if any, to the redemption date.