TransDigm sets Wednesday launch for $1.2 billion credit facility

By Sara Rosenberg

New York, Oct. 29 - TransDigm Group Inc. has scheduled a bank meeting for Wednesday with a 10 a.m. ET start to launch its proposed $1.2 billion senior secured credit facility, according to an 8-K filed with the Securities and Exchange Commission on Friday.

Credit Suisse, UBS, Barclays and Morgan Stanley are the lead banks on the deal, with Credit Suisse the left lead.

The facility consists of a $900 million six-year term loan and a $300 million five-year revolver.

Proceeds from the credit facility, along with $780 million of new senior subordinated debt, will be used to fund the $1.27 billion acquisition of McKechnie Aerospace Holdings Inc., repay about $280 million of existing term loan borrowings at TransDigm and refinance its revolver.

TransDigm expects that $500 million of its existing term loan debt and $1 billion of its existing 7¾% senior subordinated notes will remain outstanding after the completion of these transactions.

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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