Summary
This 8-K filing from TransDigm Group Incorporated (TDG) on October 6, 2010, provides an update on its previously announced acquisition of McKechnie Aerospace Holdings Inc. for approximately $1.27 billion. The company has secured a commitment for a $1.3 billion senior secured credit facility to finance this significant transaction. TransDigm intends to finance the acquisition and potential refinancing of existing debt through a combination of term loans under the new credit facility and subordinated debt issuance, subject to market conditions. The company also plans to replace its existing revolving credit facility with a potentially larger one and may repay a portion of its existing term loan. However, the terms for the new credit facility, subordinated debt, and the refinancing are still under negotiation, and there is no guarantee these plans will materialize on acceptable terms or at all.
Key Highlights
- 1TransDigm Group Inc. is proceeding with the acquisition of McKechnie Aerospace Holdings Inc. for approximately $1.27 billion (cash-free, debt-free basis).
- 2A commitment for a $1.3 billion senior secured credit facility has been obtained to finance the acquisition.
- 3The company plans to finance the transaction and refinance existing debt using a mix of term loans and subordinated debt, contingent on market conditions.
- 4TransDigm intends to replace its current revolving credit facility with a new, potentially larger, facility.
- 5A portion of the existing term loan facility may be repaid.
- 6The terms of the new senior secured credit facility and the refinancing plans are still under negotiation.
- 7There is no certainty that the new credit facilities or subordinated debt will be secured on acceptable terms, or at all.