TransDigm Group offers USD 500m of senior subordinated notes

TransDigm Group Incorporated (NYSE: TDG) has announced that on May 2, 2018, its wholly owned subsidiary, TransDigm UK Holdings plc, priced its private offering of USD 500 million aggregate principal amount of 6.875% senior subordinated notes due 2026, the company said.

The Notes will be issued at a price of 99.240% of their principal amount. The Notes will be guaranteed by TransDigm Group, its wholly owned subsidiary, TransDigm Inc., and all of TransDigm Inc.´s existing and future domestic subsidiaries on a senior subordinated basis. The offering is expected to close on May 8, 2018.

TransDigm Group intends to use the net proceeds from the offering of the Notes, together with the proceeds of USD 700 million in additional tranche E term loans, to replenish the cash used to fund the purchase price for its acquisitions of the Kirkhill elastomers business and Extant Components Group Holding, Inc. This cash and the remainder of the net proceeds will be used for general corporate purposes, including potential future acquisitions, dividends or repurchases under its stock repurchase program.

The Notes and related guarantees were offered only to qualified institutional buyers.

TransDigm Group, through its wholly owned subsidiaries, is a global designer, producer and supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft in service today. Major product offerings, substantially all of which are ultimately provided to end-users in the aerospace industry, include mechanical/electro-mechanical actuators and controls.