TransDigm talks $1.55 billion eight-year notes with 7½% area yield

By Paul A. Harris

St. Louis, Nov. 30 - TransDigm Inc. talked an offering of eight-year senior subordinated notes (B3/B-) with a 7½% area yield on Tuesday, according to an informed source.

The issue was talked at $780 million before being upsized to $1.55 billion late Tuesday night.

The order books are set to close at 11 a.m. ET on Wednesday.

UBS Investment Bank is the left lead bookrunner for the Rule 144A and Regulation S deal. Credit Suisse Securities, Barclays Capital Inc. and Morgan Stanley & Co. Inc. are the joint bookrunners.

The notes come with four years of call protection.

The company is also putting in place a $1.55 billion credit facility.

Proceeds will be used to help fund the acquisition of McKechnie Aerospace Holdings, Inc., to fund a tender offer for TransDigm's 7¾% senior subordinated notes due 2014 and to repay bank debt, with any excess cash to be added to the balance sheet.

TransDigm is a Cleveland-based aircraft components company.

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