TransDigm launches $700 million tack-on term loan C to investors

By Sara Rosenberg

New York, June 18 - TransDigm Inc. held a call at 2 p.m. ET on Tuesday to launch a $700 million first-lien covenant-light tack-on term loan C due February 2020, according to a market source.

Credit Suisse Securities (USA) LLC, UBS Securities LLC, Morgan Stanley Senior Funding Inc. and Citigroup Global Markets Inc. are the lead banks on the deal.

The loan is talked at Libor plus 300 basis points with a 0.75% Libor floor and an original issue discount of 98 to 981/2, the source said.

Included in the loan is 101 soft call protection for one year.

Commitments are due at noon ET on June 25.

With the new term loan, the company is asking to amend its senior secured credit facility to permit the special dividend and the new debt, and to change some ratios.

The company is also thinking of raising $700 million of new subordinated debt.

Proceeds will be used for a dividend recapitalization. The amount of the dividend being considered is in the range of $1 billion to $1.8 billion.

TransDigm is a Cleveland-based designer, producer and supplier of aircraft components.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.