By Paul A. Harris
Portland, Ore., March 14 – TransDigm Inc. priced a $550 million add-on to its 6 3/8% senior secured notes due March 1, 2029 (Ba3/B+) at 99.75 in a Thursday drive-by, according to market sources.
The execution rendered a 6.433% yield talk maturity.
The deal priced at the rich end of the 99.5 to 99.75 price talk. Initial price talk was 99 to 99.5.
Joint bookrunners were Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, BofA Securities Inc., BMO Capital Markets Corp., Capital One Securities Inc., KKR Capital Markets LLC, HSBC Securities (USA) Inc., Wells Fargo Securities LLC, PNC Capital Markets LLC and RBC Capital Markets LLC.
The add-on lifts the total size of the issue to $2.75 billion, including $2.2 billion priced on Feb. 12.
The Cleveland-based supplier of highly engineered aircraft components plans to use the proceeds plus cash on hand to redeem all of its outstanding 7˝% senior subordinated notes due 2027.
| Issuer: | TransDigm Inc.
|
| Amount: | $550 million
|
| Issue: | Add-on to senior secured notes
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| Maturity: | March 1, 2029
|
| Joint bookrunners: | Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, BofA Securities Inc., BMO Capital Markets Corp., Capital One Securities Inc., KKR Capital Markets LLC, HSBC Securities (USA) Inc., Wells Fargo Securities LLC, PNC Capital Markets LLC and RBC Capital Markets LLC
|
| Coupon: | 6 3/8%
|
| Price: | 99.75
|
| Yield to maturity: | 6.433%
|
| Spread: | 214 bps
|
| First call: | March 1, 2026 at 103.188
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| Trade date: | March 14
|
| Settlement date: | March 22
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| Ratings: | Moody’s: Ba3
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| S&P: B+
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | 99.5 to 99.75
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| Marketing: | Drive-by
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| Original issue: | $2.2 billion issue priced on Feb. 12, 2024
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| Fungibility: | Rule 144A add-on notes immediately become fungible with original notes; Regulation S add-on notes become fungible with original notes following 40-day cooling period
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| Total issue size: | $2.75 billion
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