New Issue: TransDigm prices $1.2 billion eight-year subordinated notes at par to yield 4 5/8%

By Paul A. Harris

Portland, Ore., Jan. 14 – TransDigm Inc. priced a $1.2 billion issue of eight-year senior subordinated notes (B3/B-) at par to yield 4 5/8% in a Thursday drive-by, according to market sources.

The yield printed at the tight end of the 4 5/8% to 4¾% yield talk.

Around midday, the deal was playing to $2.75 billion of orders, a trader said.

Goldman Sachs & Co. LLC was the left bookrunner. Joint bookrunners were Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, KKR Capital Markets LLC, RBC Capital Markets LLC, Barclays, Credit Agricole CIB, HSBC Securities (USA) Inc. and PNC Capital Markets LLC.

The Cleveland-based producer of highly engineered aircraft components plans to use the proceeds plus cash on hand to redeem all of its outstanding 6½% senior notes due 2024.

Issuer:	TransDigm Inc.
Amount:	$1.2 billion
Maturity:	Jan. 15, 2029
Securities:	Senior subordinated notes
Left bookrunner:	Goldman Sachs & Co. LLC
Joint bookrunners:	Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, KKR Capital Markets LLC, RBC Capital Markets LLC, Barclays, Credit Agricole CIB, HSBC Securities (USA) Inc. and PNC Capital Markets LLC
Coupon:	4 5/8%
Price:	Par
Yield:	4 5/8%
Spread:	369 bps
First call:	Jan. 15, 2024 at 102.313
Trade date:	Jan. 14
Settlement date:	Jan. 20
Ratings:	Moody's: B3
	S&P: B-
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	4 5/8% to 4¾%
Marketing:	Drive-by

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