TransDigm amends credit facility to allow dividends, stock repurchases

By Marisa Wong

Morgantown, W.Va., March 8 – TransDigm Group Inc. amended its second amended and restated credit agreement dated June 4, 2014 with Credit Suisse AG as administrative agent and collateral agent to permit up to $1.5 billion of dividends and share repurchases over the next 12 months, according to an 8-K filing with the Securities and Exchange Commission.

If any portion of the $1.5 billion is not used for dividends or share repurchases over the next 12 months, that amount – capped at $500 million – may be used to repurchase stock at any time after 12 months.

The amendment also increases the general investment basket to the greater of $400 million and 8% of consolidated total assets.

The company entered into the amendment on Monday.

As disclosed on Feb. 24, lenders were being offered a 15-bps amendment fee. Consents were due on Feb. 23.

TransDigm is a Cleveland-based designer, producer and supplier of highly engineered aircraft components for use on commercial and military aircraft.

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