| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers T > Headlines for TransDigm Group Inc. > News item |
TransDigm cuts discount on upsized $2.03 billion covenant-light deal, launches repricing
By Paul A. Harris
Portland, Ore., Jan. 20 – TransDigm Group Inc. cut the discount on its upsized $2,029,000,000 seven-year covenant-light first-lien term loan (Ba2/B) on Friday, according to a market source.
The new price is 99.75. The deal, which is upsized from $1,225,000,000, had been talked earlier at 99 to 99.50.
Spread talk remained unchanged at Libor plus 275 basis points with no Libor floor.
The term loan has 101 soft call protection for six months.
Commitments were due at 5 p.m. ET on Friday.
Proceeds will be used to refinance a term loan C due Feb. 28, 2020 that is priced at Libor plus 300 bps with a 0.75% Libor floor, and, due to the upsizing, to refinance a term loan D due June 2021 that is priced at Libor plus 300 bps with a 0.75% Libor floor, the source added.
Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., UBS Investment Bank, Barclays, Goldman Sachs Bank USA, HSBC Securities Corp. and RBC Capital Markets are the leads on the deal.
Also on Friday TransDigm launched a repricing of its $1,514,000,000 term loan E (Ba2/B), moving the commitment deadline ahead to 5 p.m. ET on Monday, which reduces the time the deal will be in the market by a full day.
The repricing cuts the Libor spread to 275 bps from 300 bps, and removes the 0.75% Libor floor.
The issue price will be par.
The six-month 101 call protection remains unchanged, as does the May 2022 maturity.
Credit Suisse is also leading the repricing.
TransDigm is a Cleveland-based designer, producer and supplier of highly engineered aircraft components for use on commercial and military aircraft.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.