TransDigm lifts tack-on term loan C to $900 million, sets OID at 98

By Sara Rosenberg

New York, June 26 - TransDigm Inc. upsized its first-lien covenant-light tack-on term loan C (Ba3/B+) due February 2020 to $900 million from $700 million, according to a market source.

Also, the original issue discount on the loan firmed at 98, the wide end of the 98 to 98½ talk, the source said.

As before, the loan is priced at Libor plus 300 basis points with a 0.75% Libor floor and has 101 soft call protection for one year.

Recommitments were due at 5 p.m. ET on Wednesday.

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.

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.

Other funds for the transaction will come from an offering of $500 million of notes that was downsized from an originally anticipated size of $700 million.

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.

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

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