New Issue: TransDigm prices $300 million tap of 6½% notes due 2025 at 101.5 to yield 6.156%

By Paul A. Harris

Portland, Ore., Feb. 24 – TransDigm Inc. priced a $300 million tack-on to its 6½% senior subordinated notes due May 15, 2025 at 101.5 to yield 6.156% on Friday, according to a syndicate source.

The reoffer price came at the cheap end of the 101.5 to 101.75 price talk.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and UBS Investment Bank were the joint bookrunners.

The Cleveland-based aircraft components producer plans to use the proceeds for general corporate purposes, including potential acquisitions, dividends and share repurchases, as well as to replenish $90 million of cash used to acquire SCHROTH Safety Products GmbH.

Issuer:	TransDigm Inc.
Face amount:	$300 million
Proceeds:	$304.5 million
Maturity:	May 15, 2025
Security description:	Tack-on to 6½% senior subordinated notes due May 15, 2025
Bookrunners:	Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, UBS Investment Bank
Coupon:	6½%
Price:	101.5
Yield to worst:	6.156%
Spread:	427 bps
First call:	May 15, 2020 at 103.25
Equity clawback:	35% at 106.5 until May 15, 2018
Ratings:	Moody's: B3
	S&P: CCC+
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	101.5 to 101.75
Marketing:	Quick to market
Original issue:	$450 million priced at par in May 2015
Fungibility:	Upon registration the tack-on notes will become fungible with the original notes
Total issue size:	$750 million

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