TransDigm talks upsized $3.7 billion secured notes at 6 3/8% area, scraps subordinated tranche

By Paul A. Harris

Portland, Ore., Jan. 29 – TransDigm, Inc. talked an upsized $3.7 billion tranche of eight-year senior secured notes (expected ratings Ba3/B+/BB) to yield in the 6 3/8% area, according to a syndicate source.

The secured tranche was increased from $2.7 billion. At the same time, a proposed $1 billion tranche of eight-year senior subordinated notes was withdrawn from the market.

Books close at 10 a.m. ET on Wednesday, and the Rule 144A for life and Regulation S offering is set to price thereafter.

Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Barclays, RBC Capital Markets LLC, Credit Agricole CIB, KCM, J.P. Morgan Securities LLC and PNC Capital Markets are the joint bookrunners.

The notes come with three years of call protection.

The Cleveland-based producer of highly engineered aircraft components plans to use the proceeds to fund its acquisition of Esterline Technologies Corp., a Bellevue, Wash.-based manufacturer principally serving aerospace and defense markets.

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