TransDigm plans $230 million of incremental debt with purchase of Aviation Technologies

By Sara Rosenberg

New York, Jan. 17 - TransDigm Group Inc. detailed financing plans for its acquisition of Aviation Technologies Inc., including the intention to get a $180 million term loan B add-on and a $50 million revolver add-on, according to a company news release.

The revolver add-on will not actually be used for acquisition financing; it is just being done in conjunction with the deal.

Credit Suisse and Lehman are the lead banks on the incremental debt.

TransDigm is also planning on raising $250 million of senior subordinated notes for the acquisition.

When the transaction was first announced, the company has said that it would get additional senior bank debt and additional subordinated bonds but the amounts of the debt financings were still to be determined.

Following the acquisition, debt to EBITDA is expected to be around 5.7 times and EBITDA to interest coverage is expected to be around 2.9 times.

Under the transaction agreement, TransDigm is buying Aviation Technologies for about $430 million in cash.

TransDigm is a Cleveland-based designer, producer and supplier of highly engineered aircraft components. Aviation Technologies is a Seattle-based supplier of innovative aerospace products.

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