Summary
TransDigm Group Incorporated (TDG) has filed an 8-K report on December 12, 2011, detailing its acquisition of Harco Laboratories, Incorporated. This acquisition, completed on December 9, 2011, is a significant event for investors as it signifies the company's ongoing growth strategy through strategic M&A activities. The report also outlines the necessary financial arrangements to integrate Harco into TransDigm's existing debt structure. This includes a Second Supplemental Indenture to an existing note agreement, where Harco assumes guarantees for TransDigm's outstanding indebtedness. Additionally, Harco has entered into Joinder Agreements for both the 2010 and 2011 Senior Secured Credit Facilities, making it a Loan Party and Guarantor under these credit arrangements. These actions indicate a material change in the company's financial obligations and operational structure following the acquisition.
Key Highlights
- 1TransDigm Group Incorporated acquired Harco Laboratories, Incorporated on December 9, 2011.
- 2The acquisition is classified as a material definitive agreement.
- 3Harco Laboratories, Incorporated has been added as a guarantor to TransDigm's existing Indenture, as per a Second Supplemental Indenture.
- 4Harco Laboratories, Incorporated has executed Joinder Agreements to become a Loan Party and Guarantor under TransDigm's 2010 and 2011 Senior Secured Credit Facilities.
- 5These agreements are effective as of December 9, 2011.
- 6The filing also incorporates the information regarding the creation of direct financial obligations by Harco under these agreements.