TransDigm Group revises $1 billion term loan J OID to 99.75

By Sara Rosenberg

New York, Nov. 15 – TransDigm Group Inc. tightened the original issue discount on its $1 billion first-lien term loan J due February 2031 (Ba3/B+) to 99.75 from talk in the range of 99 to 99.5, according to a market source.

Pricing on the term loan J remained at SOFR plus 325 basis points with a 0% floor.

The term loan still has 101 soft call protection for six months and amortization of 1% per annum.

Goldman Sachs Bank USA is the left lead arranger on the deal.

Commitments were scheduled to be due at noon ET on Wednesday, accelerated from 1 p.m. ET on Thursday, the source added.

Proceeds will be used with $1 billion of senior secured notes and cash on hand to fund the acquisition of Communications & Power Industries’ electron device business for about $1.385 billion and for general corporate purposes, including further increasing liquidity and funding potential future acquisitions, dividends or stock repurchases.

The electron device business manufactures electronic components and subsystems primarily serving the aerospace and defense market.

Closing on the acquisition is expected by the end of TransDigm’s third fiscal quarter of 2024, subject to regulatory approvals and customary conditions.

The debt financing transactions are expected to close prior to, and are not conditioned upon, completion of the acquisition. The new term loan J and notes will remain outstanding even if the acquisition is not consummated.

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

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