TransDigm flexes $500 million term loan to Libor plus 300 bps

By Sara Rosenberg

New York, Feb. 9 - TransDigm Group Inc. lowered pricing on its $500 million tack-on senior secured covenant-light term loan (Ba2/BB-) to Libor plus 300 basis points from Libor plus 325 bps, according to a market source.

Also, the original issue discount was tightened to 99½ from 99, the source said.

The 1% Libor floor was left unchanged.

As before, the loan, which comes due on Feb. 14, 2017, has 101 soft call protection for one year.

Recommitments are due at noon ET on Friday.

Credit Suisse Securities (USA) LLC and UBS Securities LLC are the lead banks on the deal.

Proceeds will be used to help fund the acquisition of AmSafe Global Holdings Inc. for $750 million from a group controlled by Berkshire Partners LLC and Greenbriar Equity Group LLC.

Total senior secured debt is 2.9 times, total debt is 5.2 times and net debt to EBITDA is 5.0 times.

In connection with the new deal, the company is looking to amend its existing credit facility to permit the incurrence of the term loan and leave the existing $500 million accordion feature unchanged.

Also, the existing revolver is expected to be increased to $300 million from $245 million.

Closing is expected on Monday, pending regulatory approval.

TransDigm is a Cleveland-based maker of aircraft components.

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