Summary
TransDigm Group Inc. (TDG) filed an 8-K on July 28, 2009, reporting a material definitive agreement and a related debt issuance disclosure. The company announced the acquisition of Acme Aerospace, Inc. for approximately $40 million in cash. Acme specializes in designing and manufacturing FNC main ship batteries, battery chargers, battery back-up systems, and power conversion equipment for the aerospace industry. In connection with this acquisition, TransDigm also executed a Seventh Supplemental Indenture to its existing indenture, effectively making Acme a guarantor of TransDigm's outstanding indebtedness under that indenture. Furthermore, Acme entered into agreements with Credit Suisse, including a Supplement to the Guarantee and Collateral Agreement and a Joinder Agreement to the Credit Agreement, whereby Acme guaranteed TransDigm's indebtedness under the credit facility and pledged its assets as collateral. These actions indicate a strategic expansion for TransDigm and an integration of Acme's debt obligations within TransDigm's existing financing structure.
Key Highlights
- 1Acquisition of Acme Aerospace, Inc. for approximately $40 million in cash.
- 2Acme Aerospace designs and manufactures critical power systems and batteries for the aerospace industry.
- 3Acme Aerospace's stock was acquired from Key Components, Inc., a subsidiary of Actuant Corporation.
- 4Acme Aerospace has been added as a guarantor to TransDigm's existing senior secured notes under a Seventh Supplemental Indenture.
- 5Acme Aerospace has also joined TransDigm's credit facility as a loan party and guarantor.
- 6Substantially all of Acme Aerospace's assets have been pledged as collateral to secure its guaranteed obligations under TransDigm's credit agreement.