Published on 5/20/2014 in the Prospect News High Yield Daily.
New Issue: Transdigm prices $2.35 billion eight-, 10-year senior notes
By Paul A. Harris
Portland, Ore., May 20 - Transdigm Inc. priced $2.35 billion of senior notes (Caa1/CCC+/) in two tranches on Tuesday, according to a syndicate source.
The deal included a $1.15 billion tranche of eight-year notes, which priced at par to yield 6%, at the tight end of the 6% to 6 1/8% yield talk.
Transdigm also priced a $1.2 billion tranche of 10-year notes at par to yield 6½%, at the tight end of the 6½% to 6 5/8% yield talk.
Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC, UBS Securities LLC, Citigroup Global Markets Inc., Barclays, RBC Capital Markets LLC and HSBC Securities (USA) Inc. were the joint bookrunners.
The Cleveland-based manufacturer of commercial and military aerospace components plans to use the proceeds to refinance debt, to fund a dividend and for general corporate purposes.
| Issuer: | Transdigm Inc.
|
| Amount: | $2.35 billion
|
| Securities: | Senior notes
|
| Bookrunners: | Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC, UBS Securities LLC, Citigroup Global Markets Inc., Barclays, RBC Capital Markets LLC, HSBC Securities (USA) Inc.
|
| Co-managers: | Credit Agricole Securities (USA) Inc., MCS Capital Markets LLC, PNC Capital Markets LLC
|
| Trade date: | May 20
|
| Settlement date: | June 4
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Marketing: | Quick to market
|
|
|
| Eight-year notes
|
| Amount: | $1.15 billion
|
| Maturity: | July 15, 2022
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| First call: | July 15, 2017 at 104.5
|
| Price talk: | 6% to 6 1/8%
|
|
|
| 10-year notes
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| Amount: | $1.2 billion
|
| Maturity: | July 15, 2024
|
| Coupon: | 6½%
|
| Price: | Par
|
| Yield: | 6½%
|
| First call: | July 15, 2019 at 103.25
|
| Price talk: | 6½% to 6 5/8%
|
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