TransDigm accepts tenders for 99.9% of 8 3/8% notes

By Jennifer Chiou

New York, June 23 - TransDigm Inc. said it accepted tenders from holders of $399.67 million or 99.9% of its $400 million of 8 3/8% senior subordinated notes due 2011.

The tender offer expired at midnight ET on June 22.

For each $1,000 principal amount of notes, the company said it paid $1,064.08.

The payout was based on the present value of $1,062.81, which is amount payable on the first call date of the notes on July 15, plus interest payments, discounted at a rate equal to 50 basis points over the yield to maturity on the 7% U.S. Treasury note due July 15, 2006.

The total consideration was priced at 10 a.m. ET on June 9 and includes a consent payment of $30.00 per $1,000 principal amount of notes tendered before the 5 p.m. ET on June 8 consent deadline. The reference yield was 5.298%.

Noteholders also received accrued interest up to but excluding the payment date.

After receiving the necessary consents to amend the notes, the company said it entered into a supplemental indenture.

TransDigm announced the consent solicitation and tender offer on May 26.

It said the amendments to the notes would, among other things, eliminate substantially all of the restrictive covenants and certain events of default.

In conjunction with the tender offer and consent solicitation, TransDigm said it plans to refinance all of the debt outstanding under its senior secured credit facilities and a loan agreement under which parent company TransDigm Group Inc. is the borrower.

To finance the tender offer, the consent solicitation and the other refinancing transactions, TransDigm said it will use proceeds from a $286 million issue of 7¾% senior subordinated notes due 2014 as well as borrowings under new senior secured credit facilities.

Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-0652) is dealer manager and solicitation agent. Mackenzie Partners Inc. (800 322-2885 or 212 929-5500) is information agent.

Cleveland-based TransDigm Group designs, produces and supplies aircraft components.

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