TransDigm Group Incorporated (NYSE: TDG) wholly-owned subsidiary, TransDigm Inc., has priced its private offering of an additional USD 300m aggregate principal amount of 6.5% Senior Subordinated Notes due 2025, the company said.
The Notes will be an additional issuance of the company´s existing 6.5% Senior Subordinated Notes due 2025. The notes will be issued at a price of 101.5% of their principal amount, and 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 March 1, 2017.
TransDigm intends to use the net proceeds from the offering of the Notes for general corporate purposes, which may include potential future acquisitions, dividends and purchases under its stock repurchase program, as well as to replenish approximately USD 90m of cash on its balance sheet used to fund the acquisition of SCHROTH Safety Products GmbH and certain aviation and defense assets and liabilities from subsidiaries of Takata Corporation.
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. Substantially all of its major product offerings are ultimately provided to end-users in the aerospace industry.