TransDigm Group Incorporated completed $2 billion in financing, consisting of $1.2 billion in 6.125% Senior Subordinated Notes due 2034 and $800 million in new Tranche N Term Loans due 2033. Proceeds will be used to fund the acquisitions of Stellant Systems, Jet Parts Engineering, and Victor Sierra Aviation Holdings.
Key takeaways
TransDigm Inc. issued $1,200 million aggregate principal amount of 6.125% Senior Subordinated Notes due July 31, 2034 at an issue price of 100.000%.
TransDigm Inc. incurred $800 million of Tranche N Term Loans maturing February 13, 2033, bearing interest at Term SOFR plus 2.50%.
Net proceeds from the Notes and New Term Loans, plus cash on hand, will fund the acquisitions of Stellant Systems, Jet Parts Engineering, and Victor Sierra Aviation Holdings.
The Notes are guaranteed on a senior subordinated basis by TransDigm Group Incorporated and restricted subsidiaries.
The Credit Agreement Amendment (Amendment No. 20) incurred the New Term Loans with an original issue discount of 0.125%.
The Indenture contains covenants limiting the ability to incur additional debt, pay distributions, and engage in certain asset sales or mergers.