TransDigm talks $500 million eight-year notes to yield 6¾%-7%; pricing Wednesday

By Paul A. Harris

Portland, Ore., May 2 – TransDigm Group Inc. set price talk on $500 million of TransDigm UK Holdings plc senior subordinated notes due May 2026 (B3/B-) at 6¾% to 7%, according to a syndicate source.

Books close at 1 p.m. ET on Wednesday, and the deal is set to price thereafter.

Citigroup Global Markets Inc. is the left bookrunner for the Rule 144A and Regulation S with registration rights offering. Credit Suisse Securities (USA) LLC, Morgan Stanley & Co., RBC Capital Markets LLC, Barclays, J.P. Morgan Securities LLC, KKR Capital Markets, Credit Agricole CIB, HSBC Securities, Goldman Sachs & Co. and PNC Capital Markets are the joint bookrunners.

The eight-year notes become callable after three years at par plus 75% of the coupon.

The Cleveland-based aircraft components suppler plans to use the proceeds, along with proceeds from its incremental term loan, to replenish cash used to fund a portion of the Kirkhill and Extant Components Group Holdings, Inc. acquisitions. This cash and the remainder of the proceeds will be used for general corporate purposes, including potential future acquisitions, dividends or repurchases under the company’s stock repurchase program.

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