TransDigm mulls $450 million subordinated notes offer backing acquisition, debt refinancing

By Paul A. Harris and Sara Rosenberg

Portland, Ore., May 5 – TransDigm Inc. stated in a news release that it may seek to raise around $450 million of new subordinated debt.

In a related matter on Tuesday, Standard & Poor's assigned its CCC+ rating to the company's proposed $450 million of senior subordinated notes due 2025.

Proceeds will be used to help fund the acquisition of Pexco LLC’s aerospace business for about $496 million in cash and to replenish cash on the balance sheet.

Debt financing also includes $450 million of new term loan debt that launched on Tuesday via joint bookrunners Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., UBS AG, Barclays, RBC Capital Markets, Credit Agricole and HSBC Securities (USA) Inc., and co-manager PNC Bank.

Commitments are due Thursday.

TransDigm is a Cleveland-based designer, producer and supplier of highly engineered aircraft components.

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