Summary
TransDigm Group Incorporated (TDG) announced a significant refinancing of its credit facilities through an Amendment and Restatement Agreement filed on March 5, 2013, with an event date of February 28, 2013. This action consolidates and restates existing credit agreements into a new "2013 Credit Agreement," establishing a $2.2 billion term loan facility and a $310 million revolving credit facility. The primary purpose of this refinancing was to repay outstanding term loans under a prior agreement, thereby optimizing the company's debt structure and potentially improving borrowing terms.
Key Highlights
- 1TransDigm Group Inc. entered into an Amendment and Restatement Agreement to consolidate and restate its existing credit facilities.
- 2A new "2013 Credit Agreement" was established, featuring a $2.2 billion term loan facility and a $310 million revolving credit facility.
- 3The $2.2 billion term loan facility was fully drawn on February 28, 2013, to repay prior outstanding term loans and associated expenses.
- 4The new credit facility includes a total of $2.51 billion in debt capacity ($2.2B Term Loan + $0.31B Revolving Credit).
- 5The facility allows for potential increases of up to $500 million in additional commitments or term loans, subject to lender agreements.
- 6The debt is secured by a first-priority security interest in substantially all of the company's and its domestic restricted subsidiaries' assets.
- 7The agreement includes standard covenants that limit the company's ability to incur additional debt, pay dividends, make investments, sell assets, and engage in affiliate transactions, among other restrictions.
Frequently Asked Questions
This 8-K filing announces TransDigm Group's entry into a material definitive agreement, specifically an Amendment and Restatement Agreement that restructures and consolidates its existing credit facilities into a new "2013 Credit Agreement." The primary goal was to refinance outstanding debt.
The new credit facility provides a $2.2 billion term loan facility and a $310 million revolving credit facility, totaling $2.51 billion in debt capacity.
The proceeds from the $2.2 billion term loan facility were fully drawn on February 28, 2013, and used to repay in full the outstanding term loans under the company's previous 2011 Credit Agreement and cover related transaction expenses.
The tranche B term loans mature on February 14, 2017, and the tranche C term loans mature on February 28, 2020. The revolving A commitments mature on December 6, 2015, and the revolving B commitments mature on February 28, 2018.