TransDigm cuts spread on $1.55 billion term to Libor plus 350 bps

By Sara Rosenberg

New York, Dec. 1 - TransDigm Group Inc. reduced pricing on its $1.55 billion six-year term loan to Libor plus 350 basis points from talk of Libor plus 375 bps to 400 bps, according to a market source.

In addition, the original issue discount on the term loan was tightened to 99½ from 99, the source said.

And, pricing on the $300 million five-year revolver firmed up at Libor plus 375 bps with a 50 bps unused fee and a 1-point upfront fee.

The 1.5% Libor floor on the term loan and the revolver was left unchanged.

Recommitments are due from lenders on Thursday, and allocations are expected to go out within a couple of days, the source added.

Credit Suisse, UBS, Barclays and Morgan Stanley are the lead banks on the $1.85 billion senior secured credit facility (Ba2/BB-), with Credit Suisse the left lead.

Proceeds from the credit facility, along with $1.55 billion of senior notes, will be used to fund the $1.27 billion acquisition of McKechnie Aerospace Holdings Inc. from JLL Partners, to repay an existing credit facility and to repurchase 7¾% senior subordinated notes due 2014.

TransDigm is a Cleveland-based designer, producer and supplier of highly engineered aircraft components. McKechnie is an Irvine, Calif.-based supplier of aerospace products.

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