By Paul A. Harris
St. Louis, Dec. 1 - TransDigm Inc. priced a massively upsized $1.55 billion issue of eight-year senior subordinated notes (B3/B-/) at par to yield 7¾% on Wednesday, according to an informed source.
The yield printed 12.5 bps beyond the wide point of the 7½% area price talk.
UBS Investment Bank was the left lead bookrunner for the quick-to-market deal, which was upsized from $780 million.
Credit Suisse Securities, Barclays Capital Inc. and Morgan Stanley & Co. Inc. were the joint bookrunners.
Proceeds will be used to help fund the acquisition of McKechnie Aerospace Holdings, Inc., to fund a tender offer for TransDigm's 7¾% senior subordinated notes due 2014 and to repay bank debt, with any excess cash to be added to the balance sheet.
TransDigm is a Cleveland-based aircraft components company.
| Issuer: | TransDigm Inc.
|
| Amount: | $1.55 billion, increased from $780 million
|
| Maturity: | Dec. 15, 2018
|
| Securities: | Senior subordinated notes
|
| Left bookrunner: | UBS Investment Bank
|
| Joint bookrunners: | Credit Suisse, Barclays Capital Inc., Morgan Stanley & Co. Inc.
|
| Coupon: | 7¾%
|
| Price: | Par
|
| Yield: | 7¾%
|
| Spread: | 526 bps
|
| Call features: | Callable on Dec. 15, 2014 at 103.875, 101.9375,100.969, par on and after Dec. 15, 2017
|
| Equity clawback: | 35% at 107.75 until Dec. 15, 2013
|
| Trade date: | Dec. 1
|
| Settlement date: | Dec. 14
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 7½% area
|
| Marketing: | Quick to market
|
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