TransDigm to sell $1 billion first-lien notes backing acquisition of CPI’s Electron Device unit

By Paul A. Harris

Portland, Ore., Nov. 14 – TransDigm Inc. began marketing a $1 billion offering of first-lien senior secured notes due December 2031 on Tuesday, according to market sources.

Initial guidance has the deal coming to yield 7½% to 7¾%, a portfolio manager said.

An investor conference call is scheduled to begin at 1:30 p.m. ET on Tuesday, and the notes are scheduled to price later in the week.

The Rule 144A and Regulation S for life eight-year notes become subject to an initial call after three years at par plus 50% of the coupon.

Goldman Sachs & Co. LLC is the left bookrunner. Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., KKR Capital Markets LLC, Wells Fargo Securities LLC, Capital One Securities Inc., HSBC Securities (USA) Inc., Barclays and PNC Capital Markets LLC are the joint bookrunners.

The Cleveland-based supplier of highly engineered aircraft components plans to use the proceeds plus a $1 billion first-lien term loan J due February 2031 to fund its acquisition of the Electron Device business of Communications & Power Industries, a portfolio company of The Jordan Co., LP, for $1.385 billion in cash, and for general corporate purposes, including further increasing liquidity and funding potential future acquisitions, dividends or stock repurchases.

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