8-KMaterial AgreementsRegulation FDExhibits & Filings

TransDigm Group INC 8-K Report, Material Agreement (Dec 18, 2008)

Filed December 18, 2008For Securities:TDG

Summary

TransDigm Group Inc. (TDG) announced a significant acquisition on December 16, 2008, purchasing Aircraft Parts Corporation (APC) from a subsidiary of GE Aircraft Engines for approximately $68 million in cash. APC specializes in designing and manufacturing critical components for turbine engines, including starter generators and generator control units. This acquisition expands TransDigm's product portfolio within the aerospace sector. In connection with this acquisition, TransDigm also executed a Sixth Supplemental Indenture to its existing Indenture, bringing APC under its guarantee. Additionally, APC entered into a Joinder Agreement to TransDigm's Credit Agreement and a Supplement No. 6 to the Guarantee and Collateral Agreement, effectively guaranteeing TransDigm's outstanding indebtedness under these agreements and pledging its assets as security. These financial arrangements highlight the integration of APC into TransDigm's existing debt structure.

Key Highlights

  • 1Acquisition of Aircraft Parts Corporation (APC) for approximately $68 million cash.
  • 2APC designs and manufactures starter generators, generator control units, and related components for turbine engines.
  • 3The acquisition was completed on December 16, 2008.
  • 4APC has been added as a guarantor to TransDigm's existing Indenture through a Sixth Supplemental Indenture.
  • 5APC has also become a guarantor and loan party under TransDigm's Credit Agreement via a Joinder Agreement.
  • 6APC's assets have been pledged as collateral to secure TransDigm's obligations under the Credit Agreement through Supplement No. 6 to the Guarantee and Collateral Agreement.

Frequently Asked Questions

This 8-K filing primarily announces TransDigm's acquisition of Aircraft Parts Corporation (APC) for approximately $68 million in cash and details the associated financing and guarantee agreements related to the acquisition.

APC designs and manufactures starter generators, generator control units, and related components for turbine engines, serving the aerospace industry.

The acquisition was financed with $68 million in cash. APC has been integrated into TransDigm's existing debt structure by guaranteeing TransDigm's obligations under its Indenture and Credit Agreement. Furthermore, APC has pledged its assets as collateral to secure these guaranteed obligations.

The acquisition of APC allows TransDigm to expand its product offerings in the aerospace sector, specifically by adding complementary components for turbine engines to its portfolio. This is consistent with TransDigm's strategy of acquiring businesses that supply critical components to the aerospace market.