By Paul A. Harris
Portland, Ore., Feb. 23 – TransDigm, Inc. priced a $1.1 billion add-on to its 6¾% senior secured notes due Aug. 15, 2028 (Ba3/B+) at 99 to yield 6.976% in a Thursday drive-by, according to market sources.
The issue price came on top of price talk. Early price guidance was in the 98 to 98.5 area.
Following the release of final price talk, TransDigm’s add-on deal was playing to $3 billion of orders, according to a sellside source.
The add-on notes were trading at 99 3/8 bid, 99 7/8 offered versus the 99 issue price late Thursday afternoon, the source added.
Goldman Sachs & Co. LLC was the left bookrunner. Joint bookrunners were 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.
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.
| Issuer: | TransDigm, Inc.
|
| Amount: | $1.1 billion
|
| Issue: | Senior secured notes add-on
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| Maturity: | Aug. 15, 2028
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| Left bookrunner: | Goldman Sachs & Co. LLC
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| Joint bookrunners: | 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
|
| Coupon: | 6¾%
|
| Price: | 99
|
| Yield to maturity: | 6.976%
|
| Spread: | 283 bps
|
| First call: | Feb. 15, 2025 at 103.375
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| Trade date: | Feb. 23
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| Settlement date: | March 9
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| Ratings: | Moody's: Ba3
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| S&P: B+
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 99
|
| Marketing: | Drive-by
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| Original issue: | $1 billion priced on Feb. 10, 2023
|
| Fungibility: | Add-on notes will become fungible with original notes
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| Total issue size: | $2.1 billion
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