TransDigm driving by with $1.1 billion tap of 6¾% secured notes; initial talk 98-98.5 area

By Paul A. Harris

Portland, Ore., Feb. 23 – TransDigm, Inc. plans to price a $1.1 billion add-on to its 6¾% senior secured notes due Aug. 15, 2028 in a Thursday drive-by trailing a conference call with investors, according to market sources.

Initial price talk is in the 98 to 98.5 area, a trader said.

Goldman Sachs & Co. LLC is the left bookrunner. J.P. Morgan Securities LLC, Citigroup Global Markets Inc., KKR Capital Markets LLC, Morgan Stanley & Co. LLC, RBC Capital Markets LLC, Wells Fargo Securities LLC, Barclays, Capital One Securities Inc., Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc. and PNC Capital Markets LLC are the joint bookrunners.

The Rule 144A and Regulation S for life add-on notes feature the same maturity and call features as the original issue.

The first call is Feb. 15, 2025 at 103.375.

The Cleveland-based supplier of aircraft components plans to use the proceeds plus cash on hand to redeem all of its 8% senior secured notes due December 2025.

The original $1 billion issue priced at par on Feb. 10.

The add-on notes will become fungible with the original notes (scheduled to settle on Friday), and will increase the overall size of the issue to $2.1 billion.

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