TransDigm driving by $4.4 billion first-lien notes in five-year and eight-year tranches

By Paul A. Harris

Portland, Ore., Feb. 12 – TransDigm Inc. plans to price $4.4 billion of first-lien senior secured notes (Ba3) on Monday, according to market sources.

The drive-by megadeal features tranches of five-year notes with two years of call protection and eight-year notes with three years of call protection.

Tranche sizes remain to be determined.

Initial guidance has the five-year notes coming to yield in the mid-6% area and the eight-year notes coming to yield in the high-6% area, a bond trader said.

TransDigm’s deal comes into the market in front of $1 billion of reverse inquiry, the trader added.

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, Capital One Securities Inc., Barclays, HSBC Securities (USA) Inc., Wells Fargo Securities LLC, BofA Securities Inc., BMO Capital Markets Corp., PNC Capital Markets LLC and RBC Capital Markets LLC are the joint bookrunners.

The Cleveland-based supplier of highly engineered aircraft components plans to use the proceeds plus cash on hand to fund the concurrent tender offer for all of its outstanding 6¼% secured notes due 2026 and to redeem the notes not taken out by means of the tender.

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