S&P assigns CCC+ to TransDigm notes

Standard & Poor's said it assigned its CCC+ issue-level rating and 6 recovery rating to TransDigm Inc.'s proposed $450 million senior subordinated notes due 2025. The 6 recovery rating indicates an expectation that noteholders will receive negligible recovery (0%-10%) in a payment default scenario.

At the same time, the agency affirmed its B issue-level rating on the company's existing $500 million revolver (being increased from $420 million). The 3 recovery rating remains unchanged.

S&P also affirmed its B issue-level rating on TransDigm's $1,271,000,000 term loan D (being upsized from $821 million). The 3 recovery rating is unchanged.

TransDigm plans to use the proceeds from this transaction to finance planned acquisitions and increase the cash on its balance sheet, which will slightly increase its leverage.

S&P said TransDigm’s corporate credit rating reflects its leading positions in niche markets for highly engineered aircraft components, solid operating performance, efficient operations and good product diversity, but also incorporates the risks associated with its exposure to the cyclical and competitive commercial aerospace industry.

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