Summary
TransDigm Group Incorporated announced on May 21, 2014, a significant financing transaction through its wholly-owned subsidiary, TransDigm Inc. The company priced $2.350 billion in aggregate principal amount of senior subordinated notes, comprising $1.150 billion of 6.0% notes due 2022 and $1.200 billion of 6.5% notes due 2024. In addition to the note offering, TransDigm Inc. is contemplating a substantial dividend distribution to its common stockholders, potentially ranging from $900 million to $1.7 billion. To fund this dividend and related activities, the company anticipates incurring an additional $825 million in term loans under its senior secured credit facilities and drawing on its trade receivables securitization facility. This multi-faceted financing strategy indicates a significant capital return initiative to shareholders.
Key Highlights
- 1Pricing of $2.350 billion in senior subordinated notes by TransDigm Inc.
- 2Issuance includes $1.150 billion of 6.0% Senior Subordinated Notes due 2022
- 3Issuance includes $1.200 billion of 6.5% Senior Subordinated Notes due 2024
- 4Consideration of a shareholder dividend between $900 million and $1.7 billion
- 5Anticipated incurrence of an additional $825 million in term loans
- 6Expected borrowing under the company's trade receivables securitization facility
- 7The information is disclosed via a press release furnished as an exhibit to the 8-K