TransDigm Group Inc. (NYSE: TDG) wholly-owned subsidiary TransDigm Inc. has priced its private offering of USD950 million aggregate principal amount of 6.375 percent Senior Subordinated Notes due 2026, the company said.
The Notes will be issued at a price of 100.00 percent of their principal amount. They will be guaranteed, with certain exceptions, by TransDigm Group and all of the company´s existing and future domestic subsidiaries on a senior subordinated basis. The offering is expected to close on June 9, 2016.
The company intends to use the net proceeds from the offering of the Notes, after giving effect to the initial purchasers´ discounts and the payment of fees and expenses, to fund a portion of the purchase price for its acquisition of the stock of ILC Holdings, Inc., the parent company to Data Device Corporation (the “DDC Acquisition”), and for general corporate purposes, including potential future acquisitions or dividends.
In addition, USD450 million in aggregate principal amount of the Notes will be subject to a special partial mandatory redemption at a redemption price of 100 percent of the issue price of the Notes, plus accrued and unpaid interest, if (a) the DDC Acquisition is not consummated, or the purchase agreement for the DDC Acquisition is terminated, on or prior to October 22, 2016 or (b) TransDigm Inc. announces that it will not pursue the consummation of the DDC Acquisition.
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.