TransDigm gets commitment for $1.3 billion secured credit facility

By Sara Rosenberg

New York, Oct. 6 - TransDigm Group Inc. has received a commitment for a $1.3 billion senior secured credit facility, according to an 8-K filed with the Securities and Exchange Commission on Wednesday.

The company plans on using term loans under the new credit facility, along with subordinated debt to fund the $1.27 billion acquisition of McKechnie Aerospace Holdings Inc.

Credit Suisse, UBS, Barclays and Morgan Stanley are the lead banks on the new debt.

The 8-K went on to say that, in connection with the acquisition and depending on market conditions, the company would also replace its existing revolver with a new, possibly larger revolver and may repay a portion of its existing term loan borrowings.

Following the transaction, the company expects to have total debt of around $3 billion and over $400 million of cash and undrawn revolver availability.

Closing is expected before the end of the year, subject to regulatory approvals and customary conditions.

TransDigm is a Cleveland-based designer, producer and supplier of highly engineered aircraft components. McKechnie, which is currently owned by JLL Partners, is an Irvine, Calif.-based supplier of aerospace products.

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