Summary
TransDigm Group Incorporated (TDG) filed an 8-K on February 20, 2012, reporting the completion of its acquisition of AmSafe Global Holdings, Inc. for approximately $750 million. AmSafe is a key supplier of safety and restraint equipment within the global aerospace industry. This acquisition was financed through a combination of existing credit facilities and new debt, including a $500 million Tranche B-2 Term Loan and an additional $65 million in revolving credit commitments. The filing also details the significant legal and financial agreements entered into to facilitate the acquisition. These include a Third Supplemental Indenture under which the AmSafe Entities will guarantee TransDigm's existing indebtedness, and Joinder Agreements bringing the AmSafe Entities into TransDigm's senior secured credit facilities as loan parties and guarantors. This strategic move expands TransDigm's product portfolio and market presence in the aerospace sector.
Key Highlights
- 1Completion of the acquisition of AmSafe Global Holdings, Inc. for approximately $750 million.
- 2AmSafe is identified as a leading supplier of aerospace safety and restraint equipment.
- 3Financing for the acquisition included a new $500 million Tranche B-2 Term Facility.
- 4An additional $65 million in revolving credit commitments was secured under the 2010 Senior Secured Credit Facility.
- 5The AmSafe Entities have been added as guarantors to TransDigm's existing debt through a Third Supplemental Indenture.
- 6The AmSafe Entities have become 'Loan Parties' and 'Loan Guarantors' to both the 2010 and 2011 Senior Secured Credit Facilities via Joinder Agreements.
- 7The acquisition represents a strategic expansion for TransDigm into a new product segment within the aerospace industry.