Summary
TransDigm Group Inc. (TDG) filed an 8-K on July 31, 2019, to report an amendment to its accounts receivable securitization facility. The Eleventh Amendment to the Receivables Purchase Agreement, effective July 30, 2019, extends the maturity date of the facility to July 28, 2020. This facility, originated in October 2013, is crucial for the company's liquidity, being collateralized by a substantial portion of its domestic trade accounts receivable.
Key Highlights
- 1Extension of accounts receivable securitization facility maturity date to July 28, 2020.
- 2The amendment was agreed upon by TransDigm Inc., its subsidiary TransDigm Receivables LLC, and the facility's lenders.
- 3As of June 29, 2019, the company had $300 million drawn under this facility.
- 4The securitization facility is backed by substantially all of the company's domestic operations' trade accounts receivable, highlighting its importance for short-term funding.
- 5The amendment also accounts for changes in relevant laws and market practices since the previous amendment.